NOTE4STUDENTS:

This article covers the release of the Draft Digital Personal Data Protection Rules (DPDP) and how India is moving forward with its personal data protection framework. It delves into key aspects like consent, data localisation, and rights of data principals, alongside potential advantages and challenges. UPSC often asks questions from such topics in the context of governance, technology, and rights issues. The focus is usually on how laws like these balance individual rights with state or corporate needs. Questions may appear in GS-II or GS-III, particularly around the evolving digital landscape and data protection policies. While preparing for such topics, many get bogged down by technical jargon or the intricate legal language. They miss the bigger picture: understanding the implications of these rules on privacy, governance, and businesses. This article helps by simplifying these complex ideas and breaking them down into digestible points. The “Back2Basics” section is especially valuable, connecting theoretical concepts with real-life examples to highlight the importance of balancing privacy and national security.

PYQ ANCHORING & MICROTHEMES:

GS 2:  Examine the scope of Fundamental Rights in the light of the latest judgement of the Supreme Court on Right to Privacy. [2017]

GS 2: Right to privacy is intrinsic to life and personal liberty and is inherently protect ed under Article 21 of the Constitution. Explain. In this reference discuss the law relating to D.N.A. testing of a child in the womb to establish its paternity. [2024]

Microthemes: Fundamental Rights

On January 3, 2025, the MeitY released the much-anticipated Draft Digital Personal Data Protection (DPDP) Rules — a key moment in India’s journey to regulate digital personal data.  This step follows the passage of the DPDP Act, 2023, bringing India closer to operationalising its framework for safeguarding personal data.

Salient Features of the Digital Personal Data Protection Act (DPDPA) 2023

Category	Details
Regulation	The DPDP Act regulates the processing of digital personal data and includes provisions to protect individuals’ privacy in the digital age.
Applicability	– Applies to processing digital personal data within India, collected online or digitized after offline collection. – Also applies to processing data outside India if it involves providing goods or services to data principals within India.
Evolution	– Based on the report by the Expert Committee chaired by Justice B.N. Srikrishna. – Led to the Personal Data Protection Bill, 2019. – After multiple iterations and consultations, the Digital Personal Data Protection Act, 2023 was passed by Lok Sabha and Rajya Sabha.
Key Stakeholders	Data Principal (DP): The individual or entity whose data is being protected. – Must provide written consent for data processing, specifying the purpose. – Has the right to withdraw or restrict consent at any time. Data Fiduciary: The entity responsible for collecting, storing, and sharing data. – Acts as a Consent Manager, enabling DP to give, review, and withdraw consent transparently. – The Central Government can classify certain data fiduciaries as Significant Data Fiduciaries
Features	1. Fairness– Organizations must use personal data in a way that is fair and transparent to the individuals involved. 2. Consent– Personal data can only be processed for a lawful purpose after the individual’s consent is obtained. 3. Data protection- Individuals have the right to obtain information about how their data is processed, and request corrections or erasure.

1. Right to Data Protection: It empowers individuals with the right to know and control their personal data. This includes rights to access, correction, and erasure of their data, giving citizens greater control over their personal information.
2. Data Processing and Consent: The Act mandates that personal data can only be processed with the explicit consent of the individual. Organisations must provide clear and specific consent forms and ensure that consent is obtained before data collection.
3. Data Localisation: Certain types of sensitive personal data are required to be stored and processed within India. This provision aims to enhance data security and facilitate easier enforcement of data protection laws.
4. Regulatory Authority: The Act establishes a Data Protection Board of India (DPBI) to oversee compliance and handle grievances. The Board is responsible for adjudicating disputes and imposing penalties for violations.
5. Data Breach Notification: Organisations are required to notify individuals and the Data Protection Board of any data breaches that may compromise personal information. This provision aims to ensure transparency and prompt action in the event of data leaks.
6. Fines and Penalties: It outlines stringent penalties for non-compliance, including significant fines for violations. This is intended to incentivize organisations to adhere to data protection standards.

THE RULES, ADVANTAGES AND DISADVANTAGES

1. Notice to be given by Data Fiduciary to Data Principal

• Rule: Data Fiduciaries must provide Data Principals with clear and understandable notices for informed consent. These notices must include:
  • A description of personal data being processed.
  • The purpose and services associated with the processing.
  • Details for withdrawing consent, exercising rights, or filing complaints.

 Advantages:

• Provides legal certainty by offering clear guidelines on notice requirements, reducing ambiguity for businesses and individuals.
• Enhances user empowerment by ensuring individuals receive transparent information about their data, enabling informed decisions.

 Challenges:

• There is a lack of transparency in data processing practices, which may make it difficult for individuals to fully understand how their data is being used.
• Risk of overly complex notices, leading to user fatigue or confusion.

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2. Consent Management

• Rule:
  • Data processing requires prior, clear, and informed consent from Data Principals, which may be withdrawn at any time.
  • Consent Managers will facilitate granting, tracking, and withdrawal of consent.

 Advantages:

• Strengthens trust and consumer confidence by ensuring data processing occurs only with informed consent.
• Encourages technological innovation in privacy-preserving technologies like automated consent management systems.

 Challenges:

• Emerging technologies like AI and IoT introduce new challenges in ensuring that consent mechanisms remain transparent and ethical.
• Operational challenges arise as businesses may struggle with consent tracking, especially across multiple platforms.

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3. Obligations of Data Fiduciaries

• Rule:
  • Significant Data Fiduciaries (SDFs) have additional obligations, including:
    • Conducting annual data protection impact assessments and audits.
    • Ensuring that algorithms do not harm Data Principals’ rights.
    • Imposing restrictions on specific personal data transfers outside India.
  • General Obligations:
    • Maintain transparency in processing activities.
    • Publish terms of service and grievance redressal mechanisms.

 Advantages:

• Improves business security by encouraging data fiduciaries to adopt stricter compliance mechanisms.
• Aligns with global competitiveness by ensuring Indian businesses follow international data protection standards.

 Challenges:

• Transparency and accountability issues may arise if data fiduciaries do not fully disclose how their algorithms process data.
• Cross-border compliance complexities create difficulties in following both Indian and foreign data laws.

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4. Rights of Data Principals

• Rule:
  • Access and Erasure: Individuals can request access to their personal data or demand its erasure through published mechanisms.
  • Grievance Redressal: Data Fiduciaries must address grievances within specified timeframes.
  • Nomination: Data Principals can nominate someone to exercise their rights in case of incapacity or death.
  • Transparency: Data Fiduciaries must provide clear information about data collection, processing, and sharing practices.

 Advantages:

• Enhances user empowerment by giving individuals more control over their data.
• Promotes trustworthy data ecosystems, ensuring responsible and ethical data usage.

 Challenges:

• The digital divide may prevent marginalized groups from fully benefiting from these rights.
• Operational challenges may arise in ensuring businesses respond to grievances promptly.

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5. Processing of Personal Data Outside India

• Rule:
  • Transfers to foreign entities must meet government-specified requirements.
  • Data deemed critical for national interests cannot be transferred outside India.

 Advantages:

• Supports global interoperability, allowing seamless international data transfers while ensuring adequate protections.

 Challenges:

• International cooperation challenges may arise due to different data protection policies in various countries.

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6. Processing by State for Subsidies and Benefits

• Rule: The government may process personal data under specific conditions for issuing subsidies, benefits, or services, but such processing must be legally backed.

 Advantages:

• Supports the growth of the digital economy by streamlining digital governance.

 Challenges:

• Raises human rights concerns due to potential risks of mass surveillance.

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7. Reasonable Security Safeguards

• Rule: Data Fiduciaries must implement strong security measures, including:
  • Encryption, obfuscation, and access controls.
  • Logging and monitoring unauthorized access.
  • Retaining logs and data for at least one year unless otherwise specified by law.
  • Contractual safeguards when engaging Data Processors.

 Advantages:

• Enhances business security by minimizing data breach risks.
• Encourages technological advancement in privacy-enhancing technologies.

 Challenges:

• Technology limitations make it difficult to secure data in decentralized systems like blockchain.

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8. Personal Data Breach Intimation

• Rule: Data Fiduciaries must promptly inform affected Data Principals and the Data Protection Board of India (DPBI) within 72 hours.
  • The notice must include:
    • The nature and extent of the breach.
    • Steps taken to mitigate risks.
    • Contact details for further inquiries.

 Advantages:

• Strengthens trust and consumer confidence by ensuring transparency in handling breaches.

 Challenges:

• Operational challenges arise as companies may struggle to detect and report breaches within the 72-hour window.

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9. Erasure of Personal Data

• Rule:
  • Data must be erased if the specified purpose is no longer valid.
  • Principals must be notified 48 hours before erasure and given an opportunity to retain their data.

 Advantages:

• Provides legal certainty by clarifying data retention rules.
• Strengthens user empowerment by giving individuals control over their data.

 Challenges:

• Transparency issues may arise if companies fail to inform users properly.

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10. Consent for Data of Children or Persons with Disabilities

• Rule:
  • Fiduciaries must obtain verifiable consent from parents or guardians before processing a child’s data.
  • Verification may involve identity checks through secure digital methods.

 Advantages:

• Ensures a harmonized approach to protecting vulnerable individuals’ data.

 Challenges:

• New technology challenges may arise in effectively verifying parental consent in online platforms.

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11. Government Powers

• Rule:
  • Information Requests: The government may request data from Fiduciaries for purposes listed in the Seventh Schedule.
  • Restrictions on Disclosure: Fiduciaries must seek prior written approval before disclosing sensitive data related to sovereignty, security, or public order.

 Advantages:

• Strengthens India’s position in international data policy discussions.

 Challenges:

• Raises human rights concerns due to potential risks of excessive government access to personal data.

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Conclusion

The DPDP Rules, 2025 attempt to strike a balance between privacy rights and the needs of businesses and the government. However, operational, technological, and human rights challenges must be addressed to ensure effective implementation.

#BACK2BASICS: WHY IS IT ESSENTIAL TO BALANCE PRIVACY RIGHTS AND NEEDS OF THE GOVERNMENT ?

Principle	Why is it Important?	Example
Beneficial Governance	Governments require access to data for governance, public safety, and welfare schemes, but excessive access can lead to mass surveillance and loss of privacy.	Aadhaar System (India): Provides efficient social benefits, but concerns over biometric data security have led to legal challenges on privacy.
Accountability & Transparency	Ensures governments and corporations disclose data usage, preventing misuse and building public trust.	GDPR (EU): Mandates companies and governments to disclose how personal data is used, ensuring accountability.
Lawful Data Processing	Data collection should be legally justified, preventing unauthorized surveillance or misuse.	Cambridge Analytica Scandal: Unauthorized use of Facebook data for political manipulation, raising concerns over privacy breaches.
Adaptability to New Technologies	Laws should evolve with AI, IoT, and surveillance tech to protect privacy while allowing innovation.	China’s Facial Recognition System: Raises mass surveillance concerns, showing the dangers of unchecked tech expansion.
National Security vs. Individual Rights	Governments cite national security for data collection, but excessive surveillance can infringe on civil liberties.	U.S. Patriot Act (Post-9/11): Allowed mass data collection, sparking debates over privacy violations.
Consent & Control	Individuals must have the right to control their personal data, ensuring that consent is central to data collection.	Apple’s App Tracking Transparency: Enables users to decide if they want apps to track their data, reinforcing control.
Ethical Implementation	Governments must ensure ethical, fair, and inclusive use of technology to uphold rights.	India’s Right to Privacy Judgment (2017): Supreme Court declared privacy a fundamental right, influencing data protection laws.