DPDP Act 2023 FAQ: What Every Business and Startup Must Know About Compliance

By Akanksha Vatsa & Adv. Manvee (Technology & Data Protection Lawyer)

Table of Contents

Introduction

Key Concepts Under the Digital Personal Data Protection Act, 2023

1. What is “data” and “personal data” under the DPDP Act 2023?

2. What does “processing” of personal data mean?

3. Who are Data Principals, Data Fiduciaries, and Data Processors?

4. What is the territorial scope of the DPDP Act 2023?

DPDP Act 2023: Phased Implementation and Transition from SPDI Rules

5. When do the provisions of the DPDP Act 2023 come into force?

6. Until when do the SPDI Rules continue to apply?

7. What should organisations do during the transition period?

8. How does the transition affect existing consents?

Consent Requirements Under the Digital Personal Data Protection Act, 2023

9. Why does the DPDP Act 2023 place consent at the centre of data processing?

Quick Compliance Tip for Businesses

  • Identify all processing activities currently relying on implied or bundled consent.
  • Separate service-essential processing from marketing or analytics.
  • Avoid “all-in-one” acceptance models.
  • Document which purpose each consent corresponds to.
  • Maintain a consent register mapping purpose → data category → retention period.

10. What constitutes valid consent under the DPDP Act 2023?

Quick Compliance Tip for Businesses

  • Use clear “Accept” or “I Agree” buttons (no pre-ticked boxes).
  • Avoid vague phrases like “improving services” without explanation.
  • Provide purpose-specific consent (no bundled marketing + service consent).
  • Maintain verifiable logs of consent capture (timestamp, version control).
  • Remember: The burden of proof lies entirely on the Data Fiduciary.

11. How must consent be requested and recorded?

Quick Compliance Tip for Businesses

  • Keep notice and consent flow separate from general terms & conditions.
  • Use plain, non-technical language.
  • Provide access in English and relevant regional languages.
  • Maintain an internal audit trail of consent.
  • Conduct UI/UX audits to eliminate dark patterns.

12. Is implied or deemed consent recognised?

Quick Compliance Tip for Businesses

  • Review cookie banners relying on “continued browsing.”
  • Eliminate opt-out-only consent structures.
  • Remove consent buried in scroll-wrap terms.
  • Ensure clear affirmative action before data collection.

13. Can consent be withdrawn, and what are the legal consequences?

Quick Compliance Tip for Businesses

  • Make withdrawal as simple as the consent mechanism.
  • Keep it visible and accessible in user dashboards.
  • Trigger automated cessation of downstream processing.
  • Update suppression lists to avoid re-contacting users.
  • Establish internal SOPs for withdrawal handling.

14. Is consent required for processing employee data?

Quick Compliance Tip for Businesses

  • Document why processing is necessary for employment purposes.
  • Avoid excessive surveillance or disproportionate monitoring.
  • Restrict access on a need-to-know basis.
  • Update HR data policies for DPDP compliance.
  • Conduct proportionality assessments before new monitoring tools.

15. When can personal data be processed without consent?

Quick Compliance Tip for Businesses

  • Maintain written justification for “legitimate use.”
  • Limit processing strictly to the statutory purpose.
  • Avoid secondary commercial use.
  • Periodically reassess whether consent is required.
  • Treat legitimate use as a narrow exception.

Processing Children’s Data and Data of Persons with Disabilities Under the Digital Personal Data Protection Act, 2023

16. Who is considered a child under the DPDP Act 2023?

17. How does the DPDP Act 2023 regulate processing of children’s personal data?

18. What is “verifiable consent” in the context of children?

19. Are there any exemptions from parental consent requirements?

20. What standard of care applies to children’s personal data?

21. How does the DPDP Act 2023 apply to persons with disabilities?

22. Why are these enhanced safeguards important for businesses?

Rights, Data Breach Notification, and Penalties Under the Digital Personal Data Protection Act, 2023

23. What rights does the DPDP Act 2023 confer on Data Principals?

24. Are there any notable rights that are absent under the DPDP Act 2023?

25. What are the general obligations of Data Fiduciaries in relation to these rights?

26. What constitutes a “personal data breach” under the DPDP Act 2023?

27. What are the breach notification obligations of Data Fiduciaries?

28. What powers does the Data Protection Board of India possess?

29. What penalties can be imposed for non-compliance?

  • Up to INR 250 crore – failure to implement reasonable security safeguards leading to a data breach;[50]
  • Up to INR 200 crore – failure to notify the Board or affected Data Principals of a breach;[51]
  • Up to INR 200 crore – violations relating to processing of children’s personal data;[52]
  • Up to INR 150 crore – failure by Significant Data Fiduciaries to comply with additional obligations.[53]

30. Can decisions of the Board be challenged?

Conclusion

DPDP Act Compliance Checklist for Businesses
  • Map all personal data collected, stored, and shared across the organisation.
  • Identify the lawful basis for each processing activity.
  • Redesign consent notices to meet DPDP Act requirements.
  • Implement clear mechanisms for consent withdrawal.
  • Update contracts with data processors and vendors.
  • Adopt reasonable technical and organisational security safeguards.
  • Establish an internal grievance redressal mechanism.
  • Create a data breach response and notification protocol.
  • Implement age-verification and parental consent mechanisms where required.
  • Train employees on data protection responsibilities.
  • Prepare for Data Principal rights requests (access, correction, erasure).
  • Conduct periodic data protection assessments and audits.

REFERENCES:

  • Digital Personal Data Protection Act, 2023, No. 22 of 2023, Acts of Parliament, 2023 (India).
  • Digital Personal Data Protection Rules, 2025, G.S.R. 843(E) (India).
  • Information Technology Act, 2000, No. 21 of 2000 (India).
  • Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011, G.S.R. 313(E) (India).
  • Justice K.S. Puttaswamy (Retd.) v. Union of India, (2017) 10 SCC 1 (Supreme Court of India).
  • General Clauses Act, 1897, No. 10 of 1897 (India).

[1] Justice K.S. Puttaswamy (Retd.) v. Union of India, (2017) 10 SCC 1

[2] Digital Personal Data Protection Act, 2023, Section 2(h).

[3] Id. Section 2(t).

[4] Id. Section 3(a).

[5] Id. Section 2(x).

[6] Id. Section 2(j).

[7] Id. Section 2(i).

[8] Id. Section 8(1).

[9] Id. Section 3(a).

[10] Id. Section 3(b).

[11] Id. Section 1(2).

[12] Digital Personal Data Protection Rules, 2025, Rule 1–2.

[13] Id. Rule 4 & First Schedule.

[14] Digital Personal Data Protection Act, 2023, Section 1(2) read with Notification G.S.R. 843(E) (Nov. 13, 2025).

[15] Id. Section 44(2).

[16] Information Technology Act, 2000, § 43A (India); Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011.

[17] Digital Personal Data Protection Rules, 2025, rr. 5–8.

[18] Digital Personal Data Protection Act, 2023, Section 5(2).

[19] Id 1 at pg 1.

[20] Digital Personal Data Protection Act, 2023, Section 6(1).

[21] Id. Section 6(4).

[22] Id. Section 6(1) proviso.

[23] Id. Section 5(1).

[24] Id. Section 5(3).

[25] Id. Section 6(1).

[26] Id. Section 6(4).

[27] Id. Section 6(6).

[28] Id. Section 6(5).

[29] Id. Section 7(b).

[30] Id. Section 7(a)–(f).

[31] Id. Section 2(f).

[32] Id. Section 9(1).

[33] Id. Section 9(1) proviso.

[34] Digital Personal Data Protection Rules, 2025, Rule 10.

[35] Id. Fourth Schedule.

[36] Digital Personal Data Protection Act, 2023, Section 9(3).

[37] Digital Personal Data Protection Rules, 2025, Rule 11.

[38] Digital Personal Data Protection Act, 2023, Section 33(1)(c).

[39] Digital Personal Data Protection Act, 2023, Section 11.

[40] Id. Section 12.

[41] Id. Section 13.

[42] Id. Section 14.

[43] Id. Section 8(1).

[44] Id. Section 8(3).

[45] Id. Section 2(z).

[46] Id. Section 8(6).

[47] Digital Personal Data Protection Rules, 2025, Rule 7.

[48] Digital Personal Data Protection Act, 2023, Section 18.

[49] Id. Section 23.

[50] Id. Section 33(1)(a).

[51] Id. Section 33(1)(b).

[52] Id. Section 33(1)(c).

[53] Id. Section 33(1)(d).

[54] Id. Section 33(8).

[55] Id. Section 33(5).

[56] Id. Section 28.

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