Data Fiduciary Responsibilities Under the DPDP Act: Key Requirements for Businesses
The Digital Personal Data Protection Act, 2023 establishes responsibilities for organizations that collect, use, store, share, or otherwise process digital personal data. Under the Act, a Data Fiduciary is the person or organization that determines the purpose and means of processing personal data. This may include businesses such as banks, hospitals, educational institutions, e-commerce companies, technology providers, insurance companies, and online service platforms. Data Fiduciary responsibilities involve much more than obtaining user consent. Organizations must establish processes for lawful data processing, privacy notices, security safeguards, breach management, Data Principal rights, vendor governance, data retention, and accountability. What Is a Data Fiduciary? A Data Fiduciary determines why personal data is collected and how it will be processed. For example, a company collecting customer information to deliver products, provide support, process payments, or manage ac...