Data Privacy

Establishing a Secure Privacy Framework: Mapping Organizational Needs to the DPDP Act 2023

By Kiron Mullick

Updated: July 30, 2024 ~ 3 Minutes Reading

With the Digital Personal Data Protection (DPDP) Act 2023 coming into effect, organizations must align their data processing activities with the Act’s provisions to ensure a robust and compliant privacy framework. This article outlines how businesses can map their specific needs to the relevant clauses of Chapter 4 of the DPDP Act 2023, fostering a secure and transparent data processing environment.

1. Restricting Transfer of Personal Data Outside India

Relevant Clause: Clause 16
Organizational Need: To ensure the lawful transfer of personal data to countries or territories outside India.

Mapping to DPDP Act:

  • Clause 16(1): The Central Government may, by notification, restrict the transfer of personal data by a Data Fiduciary to certain countries or territories outside India.
  • Clause 16(2): Existing laws that provide higher degrees of protection or restrictions on data transfer remain applicable.

Action Steps:

  1. Evaluate Data Transfer Requirements: Assess and document the need for transferring personal data outside India.
  2. Monitor Government Notifications: Stay updated with notifications from the Central Government regarding restricted countries or territories.
  3. Comply with Higher Standards: Ensure compliance with any higher degree of protection or restriction mandated by other applicable laws.

2. Exemptions for Specific Data Processing Activities

Relevant Clause: Clause 17
Organizational Need: To understand and leverage exemptions for specific data processing activities.

Mapping to DPDP Act:

  • Clause 17(1): Exemptions apply where processing is necessary for enforcing legal rights, judicial functions, preventing offenses, processing non-Indian data, corporate restructuring, or financial assessments.
  • Clause 17(2): Exemptions for processing by State instrumentalities in the interest of sovereignty, security, and public order.
  • Clause 17(3): Central Government may notify certain Data Fiduciaries, including startups, exempting them from specific provisions.
  • Clause 17(4): Exemptions for State or instrumentality processing not affecting Data Principals.
  • Clause 17(5): Temporary exemptions for certain Data Fiduciaries by Central Government notification.

Action Steps:

  1. Identify Eligible Exemptions: Review data processing activities to determine eligibility for exemptions under Clause 17.
  2. Document Justifications: Maintain records justifying the necessity of processing activities under the exempted categories.
  3. Comply with Prescribed Standards: Ensure adherence to any prescribed standards for research, archiving, or statistical purposes.
  4. Monitor Government Notifications: Stay informed about notifications from the Central Government regarding exemptions for certain Data Fiduciaries.

3. Ensuring Compliance for Startups

Relevant Clause: Clause 17(3)
Organizational Need: To understand specific compliance requirements and exemptions applicable to startups.

Mapping to DPDP Act:

  • Clause 17(3): The Central Government may notify certain Data Fiduciaries or classes of Data Fiduciaries, including startups, exempting them from certain sections.

Action Steps:

  1. Understand Startup Criteria: Ensure that the organization meets the criteria for being recognized as a startup under the Central Government’s notification.
  2. Monitor Exemption Notifications: Keep track of notifications that specify exemptions for startups.
  3. Prepare for Compliance: While leveraging exemptions, prepare to comply with remaining applicable provisions to ensure overall data protection and privacy.

Also Read: Get insight and guidance on Mapping Organizational Needs to the DPDP Act 2023 Chapter 3.