RM Legal advises businesses on compliance with the Digital Personal Data Protection Act, 2023 (DPDP Act) and the Digital Personal Data Protection Rules, 2025. We help organisations understand what personal data they hold, put the required notices, consents and safeguards in place, and update their contracts with vendors and service providers.
Our work includes:
The DPDP Act applies to the processing of digital personal data in India, and to processing outside India where it relates to offering goods or services to individuals in India. Any business that collects personal data of customers, employees, website users or business contacts is likely to be a "data fiduciary" with obligations under the Act.
The DPDP Rules, 2025 were notified on 13 November 2025 and come into force in phases. The Data Protection Board and related provisions took effect immediately. The rules on Consent Managers apply from November 2026. Most obligations on businesses, including notices, consent, security safeguards, breach reporting, individuals' rights, children's data and retention, apply from May 2027.
The Data Protection Board can impose penalties of up to ₹250 crore for a single breach, depending on the nature of the default, such as a failure to maintain reasonable security safeguards.
Does the DPDP Act apply to small businesses?
Yes. The Act applies to businesses of every size that process digital personal data, though the Government can exempt certain classes of data fiduciaries, including start-ups, from some provisions.
When do businesses need to comply?
Most obligations apply from May 2027. Businesses should use the time before then to map their data, update notices and contracts, and set up breach response processes.
Does it cover employee data?
Yes. Personal data of employees is covered, although processing for certain employment purposes is a legitimate use that does not always require consent.
What should a vendor contract include?
Clear instructions on processing, security obligations, breach notification to the business, restrictions on sub-processing, and deletion or return of data at the end of the contract.
What is a Significant Data Fiduciary?
A business notified by the Government on the basis of factors such as the volume and sensitivity of data processed. It must appoint a Data Protection Officer in India, carry out periodic data protection impact assessments, and undergo independent audits.
What are the penalties?
Up to ₹250 crore for a single breach, depending on the default.
Reviewed by Richa M. Goyal, Managing Partner. Last reviewed: October 2026.