Quick Guide for NGOs: Complying with India’s Digital Personal Data Protection Act, 2023

Navigating the Digital Personal Data Protection Act: A Comprehensive Guide for Indian NGOs

---

Introduction

In August 2023, India enacted the Digital Personal Data Protection (DPDP) Act, marking a significant shift in how personal data is handled across the country. While the Act is yet to be enforced, its impending implementation will have profound implications for Non-Governmental Organizations (NGOs) and Civil Society Organizations (CSOs) that manage sensitive beneficiary, donor, and volunteer data.

This article delves into the key provisions of the DPDP Act, explores its impact on NGOs, and provides actionable steps to ensure compliance.

Understanding the DPDP Act: Key Provisions

1. Definition of Personal Data
   The DPDP Act defines personal data as any information that can identify an individual, encompassing details such as names, contact information, health records, and financial data.

2. Roles and Responsibilities

   • Data Fiduciaries: Entities that determine the purpose and means of processing personal data. NGOs that collect or process personal data are considered data fiduciaries.

   • Data Principals: Individuals whose personal data is processed.

   • Data Processors: Third parties that process data on behalf of data fiduciaries.

3. Consent Management

   • Consent must be free, specific, informed, unconditional, and unambiguous, obtained through a clear affirmative action.

   • Data principals have the right to withdraw consent at any time, and the process for withdrawal must be as easy as giving consent.

4. Data Processing Principles

   • Data should be processed lawfully, fairly, and transparently.

   • Collection must be limited to the purpose for which it was obtained.

   • Data should be accurate and up-to-date.

   • Retention should be for no longer than necessary.

5. Rights of Data Principals

   • Right to access personal data.

   • Right to correction and erasure of data.

   • Right to data portability.

   • Right to complain to the Data Protection Board.

6. Data Breach Notification

   • Data fiduciaries are required to notify the Data Protection Board and affected individuals of any data breaches.

7. Penalties for Non-Compliance

• Organizations failing to comply with the DPDP Act may face penalties up to ₹250 crore per instance.

Implications for NGOs

NGOs often handle sensitive data related to beneficiaries, donors, and volunteers. The DPDP Act necessitates a reevaluation of data handling practices to ensure compliance:

• Consent Management: Implement systems to obtain and manage explicit consent from data principals.

• Data Inventory: Maintain an inventory of all personal data processed, including its source, purpose, and retention period.

• Data Security Measures: Adopt appropriate technical and organizational measures to safeguard personal data.

• Training and Awareness: Educate staff and volunteers about data protection principles and practices.

• Data Protection Officer (DPO): Designate a DPO to oversee data protection activities and serve as a point of contact for data principals.

Steps for Compliance

1. Conduct a Data Audit
   Assess the types of personal data collected, the purposes for which it is used, and the parties with whom it is shared.

2. Review Consent Mechanisms
   Ensure that consent is obtained through clear affirmative actions and that data principals are informed of their rights.

3. Update Privacy Policies
   Revise privacy policies to reflect the requirements of the DPDP Act, ensuring transparency in data processing activities.

4. Implement Data Protection Measures
   Establish technical and organizational measures to protect personal data from unauthorized access, disclosure, alteration, and destruction.

5. Establish Data Retention and Deletion Policies
   Define retention periods for personal data and implement procedures for secure deletion when data is no longer needed.

6. Prepare for Data Breach Incidents
   Develop a response plan for data breaches, including notification procedures to the Data Protection Board and affected individuals.

7. Engage with the Data Protection Board
   Stay informed about the establishment and functioning of the Data Protection Board to ensure timely compliance with its directives.

Conclusion

The DPDP Act represents a significant step towards strengthening data protection in India. For NGOs, this is an opportunity to enhance trust with beneficiaries, donors, and the public by demonstrating a commitment to safeguarding personal data. Proactive compliance will not only mitigate legal risks but also reinforce the organization's reputation as a responsible steward of personal information.

For further guidance and resources on data protection compliance, NGOs can refer to the following resources:

• IDR Online: Data Protection Compliance Guide for Nonprofits

• Internet Freedom Foundation: A Guide to Data Protection Compliance for Civil Society Organisations

• Centre for Social Impact and Philanthropy: Understanding the DPDP Act

By taking these steps, NGOs can navigate the complexities of the DPDP Act and continue their vital work with confidence and integrity.

Credit: https://accountaid.net/wp-content/uploads/2025/09/659.pdf