Digital Personal Data Protection Rules 2025: Compliance, Penalties & Business Impact

Last Updated: January 6, 2026

Have you ever wondered where your personal data is stored online? Your personal data is everywhere on websites, mobile apps, SaaS platforms, and backend systems. Billions of internet users in India rely on online services for shopping, communication, payments, and even healthcare. Protecting personal data has become a national priority.

That’s why the Digital Personal Data Protection Rules 2025 (DPDP Rules 2025) were officially notified by the Government of India on 14 November 2025 to operationalize the Digital Personal Data Protection Act 2023 (DPDP Act).

These DPDP Rules are now the legal backbone for data privacy compliance in India. They shape how businesses collect, process, store, secure, and respond to digital personal data. In simple terms, let’s see what amendments have been made in the DPDP Act, key obligations, and practical steps that can help you stay compliant and avoid penalties.

Key Rules Under 72 hours Digital Personal Data Protection Rules, 2025

The DPDP Rules, 2025, establish a comprehensive framework for data protection in India, focusing on:

RuleDetails
Rule 1Short title and commencement of rules.
Rule 2Definitions for DPDP Act, 2023; techno-legal measures, and Data Principal with the Data Fiduciary.
Rule 3Notice given by Data Fiduciary to Data Principal.
Rule 4Registration and obligations of Consent Manager.
Rule 5Processing of personal data for provision or issue of subsidy, benefit, service, certificate, licence or permit by State and its instrumentalities.
Rule 6Reasonable security safeguards, through encryption or appropriate measures.
Rule 7Intimation of personal data breach.
Rule 8Time period for specified purpose to be deemed as no longer being served.
Rule 9Contact information of person to answer questions about processing.
Rule 10Verifiable consent for processing of personal data of child.
Rule 11Verifiable consent for processing of personal data of person with disability who has lawful guardian.
Rule 12Exemptions from certain obligations applicable to processing of personal data of child.
Rule 13Additional obligations of Significant Data Fiduciary.
Rule 14Rights of Data Principals.
Rule 15Transfer of personal data outside the territory of India.
Rule 16Exemption from Act for research, archiving or statistical purposes.
Rule 17Appointment of Chairperson and other Members.
Rule 18Salary, allowances and other terms and conditions of service of Chairperson and other Members.
Rule 19Procedure for meetings of Board and authentication of its orders, directions and instruments.
Rule 20Functioning of Board as digital office.
Rule 21Terms and conditions of appointment and service of officers and employees of Board.
Rule 22Appeal to Appellate Tribunal.
Rule 23Calling for information from Data Fiduciary or intermediary.

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*Rules 1, 2 and 17 to 21 came into force on the date of their publication in the Official Gazette. Rule 4 came into force one year after the date of publication of Gazette. Rules 3, 5 to 16, 22 and 23 came into force eighteen months after the date of publication of Gazette.

**Please visit DPDPA Knowledge Centre for more information.

What exactly changed after the Digital Personal Data Protection Act 2023?

A frequent question businesses and compliance teams are asking is: Is the DPDP Rules 2025 a new law or just an update to the DPDP Act 2023? The answer is simple. The DPDP Act 2023 defined what must be protected, and the DPDP Rules 2025 define how it must be protected.

The DPDP Rules 2025 are a set of detailed regulations under the Digital Personal Data Protection Act 2023, published by the Ministry of Electronics and Information Technology (MeitY). These Rules provide the operational framework required for businesses to follow the law for safeguarding data.

Instead of just saying protect data, the DPDP Rules tell businesses:

  • How to get user consent?
  • How to disclose what data is collected and why?
  • How to notify data breaches?
  • What security safeguards to put in place?
  • How to handle children’s data?
  • Data retention and deletion timelines.
  • The role of the Data Protection Board of India.

If the DPDP Act 2023 is the constitution of data protection in India, then the DPDP Rules 2025 are the detailed instructions on how to comply with everyday digital operations.

How Are DPDP Rules 2025 Different from the Digital Personal Data Protection Act 2023?

A common confusion is whether the Act and the Rules are the same. They are related but serve very different functions.

The Digital Personal Data Protection Act 2023 is the primary legislation passed by Parliament. It establishes the legal rights of individuals (Data Principals), defines who is responsible for data (Data Fiduciaries), and sets maximum penalties for violations.

The DPDP Rules 2025, on the other hand, are subordinate legislation. They do not replace the Act but operationalize it. Without the Rules, businesses would struggle to interpret how to implement consent collection, data deletion, or breach reporting.

For example:

  • The Act says businesses must take reasonable security safeguards. The Rules explain what those safeguards should look like in practice.
  • The Act talks about breach notification. The Rules specify who to notify, when to notify, and what details must be included.

This distinction is critical for compliance. Many organizations mistakenly believe that complying with the Act alone is sufficient. In reality, non-compliance with the Rules is also a violation of the law, and penalties apply equally.

AspectDPDP Act 2023DPDP Rules 2025
VisionWhat needs to happen?How does it need to happen?
Legal LevelPrimary law passed by Parliament.Secondary legislation notified under the Act.
PurposeDefines rights, duties, and broad obligations.Provides practical and step-by-step compliance requirements.
ScopeHigh-level principles like consent, transparency, and accountability.Details on consent capture, breach reporting timelines, and retention periods, etc.
Enforcement MechanismEstablishes Data Protection Board and penalty limits.Specifies how to report breaches, how/when to notify users, and operational duties.

Who Must Comply with DPDP Rules 2025 and Does Business Size Matter?

One of the most searched questions is: Do DPDP Rules 2025 apply to small businesses and startups? Yes, business size does not exempt you from compliance.

The DPDP Rules 2025 apply to any entity that processes digital personal data of individuals in India, regardless of revenue, employee count, or industry. This includes:

  • Startups collecting emails, phone numbers, or user behavior data.
  • SMEs running websites, CRMs, or marketing tools.
  • Enterprises processing large volumes of customer or employee data.
  • SaaS companies offering cloud software to Indian users.
  • Mobile apps collecting location, device, or usage data.
  • Global companies targeting Indian users, even if servers are overseas.

The only distinction the law makes is for Significant Data Fiduciaries (SDFs), who may face additional compliance requirements due to scale, sensitivity, or risk profile. This creates a major issue for smaller organizations. Many believe data protection laws and data privacy tools are only for big tech. The DPDP Rules 2025 clearly remove that misconception.

What Are the Key Obligations for Businesses Under DPDP Rules 2025?

Let’s break down the core compliance requirements and answer “What exactly must businesses do to comply with DPDP Rules 2025?”

First, businesses must ensure lawful and transparent data processing. This means personal data can only be collected for a clearly defined purpose, and users must be informed in advance. Businesses must ask for consent in a clear, unambiguous, and standalone way. No burying it in long terms and conditions. Consent must be verified and recorded as evidence.

Users must be informed:

  • What data is collected?
  • Why is it collected?
  • How will it be used?
  • How can you withdraw consent?

2. Purpose Limitation

Collecting excessive data is no longer allowed under the Data Protection Act. Only collect and use data for a specific and clear purpose. Not for future use. Data collection must be minimal and tied directly to that purpose.

3. Security Safeguards

Organizations must implement reasonable security safeguards. These include technical measures like encryption and access controls, as well as organizational measures such as internal policies, employee training, and audit mechanisms. Failure to secure data is treated as a serious violation under the DPDP Rules framework.

4. Data Retention and Deletion

Businesses must maintain data accuracy and lifecycle controls. Data cannot be kept indefinitely. Personal data must be updated when required and deleted once the purpose is fulfilled or the retention period expires. Indefinite storage is no longer acceptable as principles.

Basic retention periods are defined (e.g., three years for certain platforms), and you must notify users 48 hours before deletion if their data will be erased.

5. Right of Users and Breach Reporting

Organizations must establish grievance redressal and user rights mechanisms. This means having a clear way for users to request access, correction, or deletion of their data, and responding within defined timelines.

If personal data is compromised, organizations must notify the Data Protection Board immediately. Report detailed info within 72 hours and inform affected users in clear, simple language. Failures here can attract steep penalties.

Rights of Data Principals Under DPDP Rules 2025

The DPDP Rules 2025 greatly expand individual control over personal data. According to the law, Data Principals are the individuals whose data is processed. To resolve their issues, fiduciaries must respond within fixed timelines (usually within 90 days).

Key user rights include:

  • Right to Access: Users can request details about what personal data is held and how it’s being used.
  • Right to Correction, Completion Update: Request inaccurate, misleading, incomplete, or outdated data be corrected, completed, or updated.
  • Right to Erasure: If the data is no longer needed for the original purpose or required by law, users can request deletion.
  • Right to Nominate: Appoint another person (like a family member) to exercise these rights in case of death or incapacity.
  • Right to Grievance Redressal: If a user has a complaint, businesses must have grievance mechanisms and respond within stipulated timelines.

6. Special Requirements

For sensitive cases like children (under 18) or persons with disabilities, verifiable parental or guardian consent is mandatory.

Under the DPDP Rules 2025, consent must be free, informed, specific, and unambiguous. Now, businesses can no longer rely on vague acceptance mechanisms or hide consent within lengthy terms and conditions.

Consent requests must be presented through clear and specific notices written in simple language and explicitly linked to the purpose of data usage. Users should clearly understand what personal data is being collected, why it is being collected, how it will be used, and how they can withdraw their consent at any time.

Another critical requirement is consent withdrawal, which must be as easy as giving consent.

Challenge for Legal Service Providers: This poses a significant operational challenge for many organizations, especially those using legacy systems that were not designed to support dynamic consent management.

Challenge for EdTech, Gaming, and Digital Marketing Companies: The Rules also introduce verifiable parental consent for processing children’s data, adding further complexity for edtech platforms, gaming apps, and social media services.

Many organizations struggle with manual consent tracking, which is error-prone, difficult to audit, and risky from a compliance perspective.

As a result, adopting Consent Management Platforms (CMPs) becomes almost essential to maintain verifiable records, manage withdrawals efficiently, and reduce exposure to penalties. Additionally, businesses are required to maintain detailed logs and records of consent.

It should include when it was given, how it was obtained, and any subsequent updates. These records serve as critical compliance evidence under the Digital Personal Data Protection Act framework.

What should a business do if a data breach occurs under DPDP Rules 2025?

The Rules make data breach reporting mandatory and time-bound. If a personal data breach occurs, businesses must immediately notify the Data Protection Board of India and submit detailed information within 72 hours. They must also inform affected users clearly, explaining what happened, what data was affected, what steps are being taken, and what actions users should take to protect themselves.

This requirement creates pressure on organizations to have incident response plans and monitoring tools in place. Without automated alerts and logging, meeting the 72-hour deadline becomes extremely difficult. From a risk standpoint, failure to report a breach can attract penalties that are often higher than the breach itself.

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What Are the Penalties for Non-Compliance with DPDP Rules 2025?

So, if you are thinking What happens if a company does not comply with DPDP Rules 2025?

Then, the DPDP framework introduces financial penalties that can go up to ₹250 crore, depending on the nature of the violation. These penalties are not symbolic. They are designed to enforce accountability.

Serious violations include:

  • Failure to protect personal data.
  • Non-reporting of data breaches.
  • Violating children’s data protection rules.
  • Ignoring user rights requests.

Even smaller violations, such as providing false information during grievance handling, can result in fines. For startups and SMEs, this is a major pain point. One compliance failure can significantly impact business continuity, investor confidence, and brand reputation.

Non-compliance isn’t a slap on the wrist. The DPDP Act and accompanying Rules attach significant penalties based on the type of violation. Here’s a practical breakdown:

ViolationPossible Penalty
Failure to maintain reasonable security safeguardsUp to ₹250 crore
Not notifying the Board or users of a breachUp to ₹200 crore
Children’s data obligations violationUp to ₹200 crore
Other violations of the Act/RulesUp to ₹50 crore

How Can Businesses Prepare for DPDP Rules 2025 Compliance Effectively?

Preparation should begin with data discovery tools and audit exercises. Businesses must know what personal data they collect, where it is stored, and who has access to it. Next, organizations should implement privacy-by-design principles. This means embedding data protection tools into systems, apps, and workflows from the start, not as an afterthought.

Using the right tools can significantly reduce compliance complexity, help overcome operational challenges, and reduce manual errors. Solutions such as:

Finally, regular training, audits, and policy updates ensure long-term compliance as interpretations evolve.

Final Thoughts: Why DPDP Rules 2025 Matter?

The Digital Personal Data Protection Rules 2025 put India on a clear path toward strong digital privacy governance. If executed well, they help protect individuals’ rights while letting businesses innovate responsibly.

For business leaders, this is not just a regulatory exercise. It’s a strategic shift. Data protection is now part of brand trust, risk management, and competitive positioning. Compliance is not optional, and complying early means less risk, fewer surprises, and a stronger digital reputation.

The Digital Personal Data Protection Rules 2025 are not just a legal requirement. These Rules are a business reality. Companies that treat compliance as a trust-building opportunity will gain a competitive edge, while those that ignore it risk penalties, reputational damage, and loss of user confidence.

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FAQ

  1. What are the DPDP Rules 2025 in India?

    The DPDP Rules 2025 are detailed regulations issued under the Digital Personal Data Protection Act 2023 that explain how businesses must collect, process, store, protect, and delete personal data of individuals in India.

  2. How are DPDP Rules 2025 different from the Digital Personal Data Protection Act 2023?

    The Digital Personal Data Protection Act 2023 defines the legal framework and principles of data protection, while the DPDP Rules 2025 provide step-by-step operational guidelines, timelines, and compliance requirements for businesses.

  3. Who needs to comply with DPDP Rules 2025?

    Any organization that processes digital personal data of individuals in India must comply, including startups, SMEs, enterprises, SaaS companies, mobile apps, e-commerce platforms, and foreign companies offering services to Indian users.

  4. Does DPDP Rules 2025 apply to small businesses and startups?

    Yes, DPDP Rules 2025 apply to small businesses and startups if they collect or process personal data such as names, emails, phone numbers, or user behavior, regardless of company size or revenue.

  5. What is a Data Fiduciary under DPDP Rules 2025?

    A Data Fiduciary is any person or organization that determines the purpose and means of processing personal data, such as websites, apps, SaaS platforms, and businesses handling customer or employee data.

  6. What are the key obligations for businesses under DPDP Rules 2025?

    Businesses must obtain valid user consent, limit data collection to specific purposes, implement reasonable security safeguards, respond to user rights requests, report data breaches, and delete personal data once retention periods expire.

  7. What rights do users have under DPDP Rules 2025?

    Users (Data Principals) have the right to access, correct, update, and erase their personal data, withdraw consent, file grievances, and receive notifications in case of a data breach.

  8. What are the consent requirements under DPDP Rules 2025?

    Consent must be free, informed, specific, and unambiguous. Businesses must clearly explain why data is collected and allow users to withdraw consent easily at any time.

  9. Is parental consent mandatory under DPDP Rules 2025?

    Yes, verifiable parental or guardian consent is mandatory for processing personal data of children below 18 years of age.

Published On: January 6, 2026
Jasmeet Kaur

Jasmeet is a bilingual content writer with proven expertise in creating B2B content across digital and print platforms to support Sales & Marketing. She is a dynamic content specialist with 4+ years of experience collaborating with industry giants like X, Unilever, Yell UK, Tej Bandhu Group, and Veoci (a Gartner-recognized Cool Vendor). With Techjockey, Jasmeet crafts compelling and targeted content that enhances brand visibility, drives engagement, and supports strategic marketing initiatives in the tech industry. She leverages her diverse skill set to develop insightful blog posts, detailed product descriptions, and persuasive case studies. She ensures that Techjockey’s messaging resonates with its audience and reinforces its position as a leader in the technology solutions space.

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