What is the DPDP Act 2023 and Why Does It Matter in 2026?

The Digital Personal Data Protection Act 2023 is legislation that establishes comprehensive protection of digital personal data. It sets out the framework for an individual’s right to privacy while allowing legitimate data processing.

This Act enables individuals to exercise their right to personal data, the right to correct inaccurate data, and the right to erase data, among others.

For organisations that collect public data, the Act enforces obligations like obtaining valid consent, processing data only for specified purposes, and implementing security safeguards.

What Does the DPDP Act Cover?

Now, you might be wondering, ‘What is covered under the DPDP Act?’ The answer is quite simple. DPDP Act covers personal data that can be used to identify an individual. This includes the following.

Directly Identifiable Data

This refers to data that can serve as a clear identification of the individual. It includes names, phone numbers, addresses, emails, government identification numbers, and financial accounts.

Indirectly Identifiable Data

This kind of data can be used to identify an individual by combining it with other available information. For example, IP addresses, location data, biometric data, and user IDs are indirectly identifiable data.

Sensitive Personal Data

Although there is no separate category under the Act, certain personal data that are considered sensitive receive additional protection. These include data related to children under 18, which requires verifiable parental consent.

The DPDP Act is only applicable to digital personal data. It does not include paper records or documents unless they are subsequently digitised.

Individual Rights Granted by the DPDP Act

The Digital Personal Data Protection Act 2023 grants the following rights to individuals for data privacy and safety.

1. Right to Information: The individual has the right to receive a summary of how their data is being processed and the relevant activities undertaken. They can also know the identities of other fiduciaries or processors with whom their data is being shared.
2. Right to Correction and Erasure: The individual can correct incorrect or misleading data and complete incomplete data. They can also erase their personal data if they feel it is no longer necessary.
3. Right of Grievance Redressal: If the individual faces any grievance regarding the service provided to them, they can approach the Data Fiduciary’s grievance mechanism. If it does not get resolved, they can also escalate the matter to the Data Protection Board of India (DPBAI).
4. Right to Nominate: The individual can nominate someone else to exercise their rights in case of their absence.

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Key Compliance Requirements of DPDP Act

The Digital Personal Data Protection Act 2023 has laid down certain obligations for businesses that collect customer data. As per the DPDP Rules 2025, organisations must:

1. Obtain valid, intentional, unambiguous, and free consent from the individual to process personal data.
2. Limit data processing to specified, legitimate purposes disclosed to the individual when obtaining consent.
3. Collect and process only the necessary data for the stated purpose.
4. Communicate clear privacy notices (available in English and other Indian languages) to the individual explaining what data will be collected, how it will be used, how to exercise rights, and data retention period.
5. Implement reasonable and appropriate security safeguards to prevent breach of privacy.
6. Ensure that individuals can exercise their rights when necessary.
7. Intimate any breach of personal data or privacy to the DPBAI and the affected individual at the earliest.
8. Obtain verifiable parental consent for processing children’s data.
9. Delete or anonymise data when no longer necessary for the purposes collected.

Why is the DPDP Act Important in 2026?

In 2026, digitisation of workflow has become the norm in most sectors. Organisations operate online and collect data to customise their services to audience preferences.

But the rising number of fraudsters waiting to scam people using their personal data poses a serious concern. Therefore, digital personal data protection has become crucial for both service providers and customers. The DPDP Act ensures that personal data is protected and individual privacy is safeguarded.

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Final Words

The Digital Personal Data Protection Act 2023 ensures protection of an individual’s identity and assets through protection of personal data online. If organisations violate the rules of the Act, they can be fined up to ₹250 crore per violation.

It is important for individuals to be aware of their rights under the DPDP Act. Parents are advised to exercise caution before sharing sensitive data of their children. Making careful, well-informed decisions will help prevent unwanted situations.

Frequently Asked Questions

Who Needs to Comply with the DPDP Act?

As per India data protection law, businesses that collect customer data need to comply with the DPDP Act. Data processors who process personal data for Data Fiduciaries (data collectors and controllers) also need to follow the rules and regulations established by the Act.

Does the DPDP Act Apply to Foreign Companies?

Yes, if the foreign companies provide services to customers in India and need to collect data, they must also comply with the DPDP Act.

Can Personal Data be Erased?

Yes. If the individual wishes to erase the data they provided earlier, they have the right to do so.

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***Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to change. Please consult an expert before making any related decisions.