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Draft DPDP Rules 2025: Key Provisions and Penalties

21 February 20252 min read
NATIONAL AFFAIRSDraft DPDP Rules2025: KeyProvisions andPenalties21 February 2025safalsetu.com

Why in the news

The Centre floated the Draft Digital Personal Data Protection Rules, 2025, to make the DPDP Act, 2023 workable by setting out procedures, compliance duties and enforcement.

Background

  • The Supreme Court in Justice K.S. Puttaswamy vs Union of India (2017) declared the Right to Privacy a Fundamental Right.
  • The DPDP Act was enacted in 2023 to regulate personal data processing; the 2025 draft rules are subordinate legislation adding operational detail.
  • Objectives: define procedures and duties, enable compliance by Data Fiduciaries and Processors, detail the working of the Data Protection Board of India (DPBI), and give Data Principals ways to enforce rights.

Scope

  • Covers digital personal data in India, and outside India when goods or services are offered to people in India; data digitised later is also covered.
  • Five actors: the Board, Data Principals (individuals), Data Fiduciaries, Consent Managers and Data Processors.

Key provisions

TopicProvision
Notice and consentStandard privacy notice; consent free, informed, specific, unambiguous and withdrawable; multiple languages
Data Principal rightsAccess, correction, erasure, grievance redressal, nomination; complaints to DPBI
Fiduciary dutiesData minimisation, purpose limitation, security safeguards (encryption, access control, breach response), processing records
Significant Data FiduciaryJudged on turnover, data volume and risk to sovereignty; must appoint a DPO, run DPIAs and get independent audits
Cross-border transferAllowed unless the Central Government restricts it
Children (under 18)Verifiable parental consent; no behavioural tracking or targeted ads
GrievancesResolution in 30 days, then escalation to the Board
Breach noticeTo DPBI and users within 72 hours, stating data type, impact and remedy

Role of the DPBI

  • A quasi-judicial central regulator: inquires into breaches, investigates complaints and imposes penalties.
  • Also adjudicates disputes, issues guidelines and advisory opinions, and oversees grievance redressal.
  • Appeals against its orders lie before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT).

Penalties (maximum)

ViolationUp to
Delayed breach notification₹50 crore
Unlawful processing or non-erasure₹150 crore
Children’s data not protected₹200 crore
Breach with no safeguards in place₹250 crore

Sectoral and global view

  • Startups and SMEs: light-touch compliance and Consent Managers to help.
  • Health and finance: strong encryption, anonymisation and regular DPIAs.
FeatureIndia DPDP RulesEU GDPRUS CPRA
ReachGlobal if targeting IndiansExtra-territorialCalifornia residents only
ChildrenParental consent under 18Under 16Under 13
Top penalty₹250 crore€20 million or 4% of turnover$7,500 per violation

Concerns

  • Vague terms such as “public interest” and “significant harm”.
  • Section 17 gives wide exemptions to government bodies.
  • The DPBI is still being set up; low digital literacy may blunt consent; unclear rules on restricted countries for data transfer.

Way forward

  • Finalise after consultation, give the DPBI real autonomy, run awareness drives and work with industry.

Exam angle

  • Key terms: Data Principal, Data Fiduciary, Consent Manager, SDF, DPO, DPIA.
  • Appellate forum: TDSAT; breach window: 72 hours; top penalty ₹250 crore.

Test yourself

1. Under the Draft DPDP Rules 2025, within what time must a data breach be reported to the DPBI and affected users?

Mandatory breach reporting is within 72 hours.

2. Appeals against Data Protection Board of India orders under the Draft DPDP Rules 2025 go to which body?

Orders can be appealed before TDSAT.

3. What is the maximum penalty under the Draft DPDP Rules 2025 for a data breach without adequate safeguards?

Breach without safeguards attracts up to ₹250 crore.