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

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.