In an era where digital interactions are part of everyday life, personal information has become extremely valuable. Anything that can identify a person such as names, contact details, payment information or online activity falls under the category of personal data. Because personal data is constantly collected and used by websites, apps and service providers, securing it against misuse and cyberattacks has become a top priority for both individuals and governments.
To address these concerns, India introduced the Digital Personal Data Protection Act, 2023 (DPDP Act) a modern data protection law designed to regulate how personal data is collected, stored, processed, shared and erased. This guide explains what the DPDP Act means for individuals and organizations, and outlines key requirements under the law.
What Is the DPDP Act?
The DPDP Act is India’s primary legal framework for protecting digital personal data. It applies to any entity that processes personal data collected in India, as well as organizations outside India that offer goods or services to people in India.
The law establishes clear roles:
• Data Principal: The person to whom the data belongs (i.e., the individual user).
• Data Fiduciary: Any organization or individual that decides how and why personal data is processed.
• Data Processor: A person or entity that processes data on behalf of a Data Fiduciary.
Certain public authorities may be exempt from parts of the Act when acting for national security or law enforcement.
Rights of Individuals (Data Principals)
Under the DPDP Act, individuals gain several important rights regarding their data:
• Right to Information & Access: People can find out what data has been collected about them and how it is being used.
• Right to Correction & Deletion: Users can request that inaccurate data be corrected or that their data be removed from a database.
• Right to Grievance Redressal: If data is misused, individuals have the right to lodge complaints with the appropriate authority.
• Right to Nominate: In case someone becomes incapacitated or passes away, they can nominate another person to exercise these rights on their behalf.
At the same time, individuals must ensure the data they provide is accurate and must not falsely claim the identities of others. Violations of these responsibilities may result in penalties.
Responsibilities of Organizations
Entities that handle personal data (Data Fiduciaries) and those processing data for them must:
• Collect and use personal data only for legitimate purposes and with clear consent.
• Put in place adequate security measures to prevent unauthorized access, leaks, or breaches.
• Inform the Data Protection Board of India and affected individuals if a data breach occurs.
• Respect data retention schedules and delete data when no longer required.
• Store data in ways that comply with regulatory requirements, including restrictions on storage locations.
The Data Protection Board of India is an authority established by the Act to oversee enforcement, handle complaints, and ensure compliance.
Penalties for Non-Compliance
Failing to follow the requirements of the DPDP Act can lead to significant penalties for businesses. Beyond legal fines, non-compliance can damage an organization’s reputation and erode customer trust.
Recent rules notified under the DPDP framework also introduce higher fines for certain violations for example, for failure to implement adequate security safeguards or to report breaches on time.
Who the Law Does Not Apply To
Some situations are exempt from parts of the DPDP Act, including:
• Data processing by individuals for purely personal or domestic activities.
• Personal data that is already publicly available when shared by the individual.
• Data handled for academic research, journalism or archival purposes.
• Government processing done for national security or law enforcement reasons.
What This Means for Your Business
If your business collects or manages personal data even basic information like names or email addresses you must take compliance seriously. This includes:
• Updating privacy notices and consent forms.
• Implementing robust security technologies.
• Creating internal processes for breach detection and notification.
• Educating your team about data protection responsibilities.
The DPDP Act marks a major step in strengthening digital privacy in India. By clearly defining rights and responsibilities, it helps protect users from misuse of their personal data while giving organizations a framework to build trust and compliance.
Penalties Under India’s DPDP Act, 2023
The Digital Personal Data Protection Act, 2023 empowers the Data Protection Board of India to impose significant financial penalties on organizations that fail to comply with data protection obligations. These penalties are designed to encourage responsible data handling and stronger cybersecurity practices.
Penalty Structure
Nature of Violation Maximum Penalty
- Failure to implement reasonable security safeguards to prevent personal data breaches Up to ₹250 crore
- Failure to notify the Data Protection Board and affected individuals about a personal data breach Up to ₹200 crore
- Non-compliance with obligations related to children’s personal data (including consent requirements) Up to ₹200 crore
- Failure to fulfill additional obligations of Significant Data Fiduciaries (such as audits and risk assessments) Up to ₹150 crore
- Failure to comply with lawful directions issued by the Data Protection Board of India Up to ₹150 crore
- Violation of consent requirements or misuse of personal data Up to ₹100 crore
- Breach of any other provisions of the DPDP Act or related rules Up to ₹50 crore
Key Points to Note
• Penalties are discretionary and depend on factors such as the nature, gravity, and duration of the violation.
• Repeated non-compliance may attract higher scrutiny and enforcement actions.
• Apart from financial penalties, organizations may also suffer reputational damage and loss of customer trust.
Why Compliance Matters
The DPDP Act places accountability directly on organizations handling personal data. Investing in strong cybersecurity controls, clear consent mechanisms, and breach response processes is no longer optional it is essential for legal compliance and business credibility.
How Nilmay System Helps You Stay DPDP-Compliant (with Acronis Solutions)
At Nilmay System, we help organizations align with India’s Digital Personal Data Protection (DPDP) Act, 2023 by combining process guidance, cybersecurity best practices, and enterprise-grade tools.
As an authorized partner of Acronis, we leverage globally trusted data protection and cybersecurity solutions to help businesses meet DPDP obligations efficiently and securely.
Our DPDP Compliance Approach Includes
• Data Security & Breach Prevention
We implement advanced backup, endpoint protection, ransomware defense, and data integrity solutions using Acronis Cyber Protect, helping organizations safeguard personal data against cyber threats.
• Breach Detection & Response Readiness
Our solutions enable faster detection of incidents and help businesses prepare structured breach response workflows — essential for timely reporting to authorities under DPDP requirements.
• Secure Backup & Recovery
Automated, encrypted backups ensure data availability and integrity, reducing business risk and improving resilience in case of cyber incidents or system failures.
• Policy & Awareness Support
We assist organizations in aligning internal IT practices with DPDP principles such as data minimization, purpose limitation, and accountability.
DPDP Act Compliance Checklist for Organizations
Use this checklist to evaluate your readiness under the DPDP Act, 2023:
Governance & Consent
☐ Clear privacy policy explaining data collection and usage
☐ Lawful, informed, and purpose-specific consent mechanism
☐ Consent withdrawal process available to users
Data Security
☐ Reasonable security safeguards implemented
☐ Encrypted storage and secure access controls
☐ Regular vulnerability assessments and audits
Data Breach Management
☐ Defined incident response and escalation process
☐ Ability to notify affected individuals promptly
☐ Capability to report breaches to the Data Protection Board of India
Data Lifecycle Management
☐ Data retention policies in place
☐ Secure deletion of personal data when no longer required
☐ Controlled data sharing with third-party processors
Rights of Data Principals
☐ Mechanism for data access, correction, and deletion requests
☐ Grievance redressal system available
☐ Nomination facility supported (where applicable)
Children’s Data Protection
☐ Age verification and parental consent mechanisms
☐ No tracking or targeted advertising for children’s data
Credit & Source Acknowledgement
Inspired by: “Decoding India’s DPDP Act – Your Guide to Protecting Personal Data” by Acronis.
All trademarks, product names, and references to Acronis remain the property of their respective owners.