Read in
8
min
The Digital Personal Data Protection (DPDP) Act 2023 : Impacts, Penalties & Prevention
The Digital Personal Data Protection (DPDP) Act 2023 is India’s new privacy law that governs how businesses collect, store, process, and secure personal data. Passed in August 2023, the Act applies to all mobile apps, websites, and digital platforms that handle user information within India or offer services to Indian users. It introduces clear rules on user consent, data minimisation, data security, breach reporting, children’s data protection, and rights such as data deletion. For businesses, the DPDP Act is not optional. Non-compliance can lead to penalties of up to INR 250 crore, making data protection a critical part of product development and operations. For mobile app and website owners, this means implementing clear consent flows, secure backend architecture, account deletion options, and transparent data practices. At BrainBox Apps, we ensure that all apps and digital products we build follow DPDP requirements, incorporating secure data handling, compliant user interfaces, and best-practice privacy structures. The Act is not just a legal framework but a step towards building trust and delivering safer, more responsible digital experiences in India. As of December 2025, India's Digital Personal Data Protection (DPDP) Act, 2023, is fully operational with the notification of the detailed DPDP Rules, 2025 in November 2025, establishing a citizen-centric framework for data privacy, defining data fiduciary obligations, empowering individual rights (access, correction, erasure), and setting up a digital Data Protection Board for compliance and enforcement, with phased implementation and significant focus on consent and breach reporting.
Author
Akshat Chaturvedi
Published on
Dec 11, 2025
Blog Categories
Technology
Business Strategy
Productivity
India has taken a major step towards strengthening digital privacy and building a safer online ecosystem. The Government of India passed the Digital Personal Data Protection Act (DPDP Act 2023), a landmark piece of legislation that defines how personal data must be collected, processed, stored, shared, and secured across digital platforms.
Whether you run a startup, a growing business, or a large organisation, and whether you operate a mobile app, web application, SaaS product, or any digital system that collects user information, this law directly impacts you.
What Is the DPDP Act 2023?
The Digital Personal Data Protection Act, 2023 is India’s comprehensive law governing the protection of digital personal data. It recognises two things:
An individual’s fundamental right to protect their personal data.
An organisation’s need to process data for legitimate, lawful purposes.
This is India’s first dedicated digital privacy law, similar to GDPR in Europe, but designed specifically for Indian regulatory and business environments.
When Was It Passed?
The DPDP Act was:
Approved by the Union Cabinet
Passed by both Houses of Parliament on 11 August 2023
Notified after receiving the Presidential assent
Set for phased implementation through official government notifications
Fully operational with the notification of the detailed DPDP Rules-2025, in November 2025
This means different sections may come into force at different times, but the industry is expected to begin aligning systems and processes immediately.
Who Does the DPDP Act Apply To?
The Act applies to:
A. All organisations in India
Any company, startup, agency, or individual operating:
A mobile app
A website
An online service
A SaaS platform
An e-commerce business
A digital product collecting customer data
B. Organisations outside India
If your app or service targets users in India, you are also covered by this Act, even if your company is based outside the country.
C. Data processors
Cloud providers, IT agencies, software developers, and outsourcing partners also come under the Act.
In short, if your digital product handles the personal data of Indian residents, the law applies to you.
Businesses often do not realise that even simple mobile apps or websites fall under this law. At BrainBox Apps, we help clients understand these obligations and build products that remain compliant from Day 1.
What Counts as Personal Data?
Any data that can identify a person directly or indirectly, such as:
Name
Mobile number
Email ID
Location
Date of birth
Aadhaar or PAN information
Photos and documents
Device information
Behavioural or usage data
If your app or website collects any of this, even through analytics or sign-up forms, you must comply with the DPDP Act.
Key Obligations Under the DPDP Act
The Act places specific responsibilities on all digital businesses. Below are the core requirements explained easily -
Consent Must Be Clear and Meaningful
Users must be told:
What data is being collected
Why it is being collected
How it will be used
How they can withdraw consent
How they can file complaints
Consent cannot be hidden behind complex terms. It must be simple, transparent, and explicit.
Collect Only Necessary Data
Apps cannot ask for permissions or data that are not required for service delivery.
For example, a notes app cannot request access to contact lists.
Data Must Be Stored Securely
Businesses must use reasonable security safeguards to prevent:
Data leaks
Unauthorised access
Accidental exposure
Strong encryption, secure servers, and access control systems become mandatory.
Data Breach Reporting Is Compulsory
If any user data is compromised, the company must notify:
The Data Protection Board
The affected users
Failure to do this can lead to heavy fines.
Data Must Be Deleted When the Purpose Is Fulfilled
If the service is no longer required, or the user deletes their account, the organisation must erase their data unless retention is legally required.
Stricter Rules for Children
For users below 18 years:
Parental consent is mandatory
No behavioural tracking
No targeted advertising
This affects all edtech, gaming, school-management, and kids-based apps.
International Data Transfer May Be Restricted
The Government may restrict sending data to certain countries.
Businesses must ensure compliance while choosing global servers. If you want to discuss which servers are Indian and whether Amazon AWS, GCP or Microsoft could be used, please get in touch with our experts.
In the next section, we will learn about the penalties and impacts of DPDP on websites and mobile apps.
Penalties Under the DPDP Act
The Act includes some of the highest penalties ever introduced in India for digital non-compliance.
Violation | Maximum Penalty |
|---|---|
Failure to prevent a data breach | Up to INR 250 crore |
Failure to report a breach | Up to INR 200 crore |
Mishandling children's data | Up to INR 200 crore |
Non-compliance by large enterprises (Significant Data Fiduciaries) | Up to INR 150 crore |
General violations | Up to INR 50 crore |
This makes compliance not just a best practice but a business necessity.
These penalties make it crucial for companies to adopt secure, compliant digital infrastructure. Our team at BrainBox Apps ensures every system we build aligns with DPDP requirements to minimise business risk.
How the DPDP Act Impacts Mobile Apps and Websites
As a mobile app development and digital product partner, BrainBox Apps closely studies these regulatory shifts. Here is how the Act affects your mobile app or website -
Your app must include consent flows
This includes:
Permission pop-ups
Consent banners
Privacy policy links
Terms of use
These cannot be vague or incomplete.
Your backend architecture must be secure
Encrypted storage, access control, audit logs, and regular updates become part of standard practice.
Account deletion and data withdrawal features become mandatory
Users must be able to request:
Deletion of data
Correction of details
Withdrawal of consent
Your digital product must support these requests.
Minimisation of data becomes part of design
Apps must be designed to collect only what is necessary, and nothing more.
Hosting decisions may need revision
For compliance, many businesses may shift to Indian data centers or approved countries.
What This Means for BrainBox Apps Existing and Future Clients
As your technology partner, BrainBox Apps ensures:
Your apps and websites follow DPDP compliance guidelines.
We design data flows and permission systems as per legal requirements.
We build secure backend architectures following industry best practices.
We help integrate privacy policies, consent forms, and account deletion features.
We guide clients on storage, retention, and safe handling of user data.
DPDP compliance is not only about avoiding penalties. It builds trust, strengthens your brand, and assures your users that their data is safe.
Preparing Your Business for DPDP Compliance
Here is the recommended approach:
Step 1: Audit what data your platform collects
Identify all personal data fields.
Step 2: Review all permissions
Check if each permission is necessary.
Step 3: Implement clear consent mechanisms
Make policies visible and easy to understand.
Step 4: Strengthen security
Use encryption, secure login flows, and safe storage.
Step 5: Enable data deletion and withdrawal
Allow users to control their data.
Step 6: Maintain documentation
Keep records of consent, policies, and data flows.
Step 7: Train your team
Ensure internal staff follow privacy guidelines.
At BrainBox Apps, we help our clients implement each of these steps seamlessly.
Conclusion
The Digital Personal Data Protection Act, 2023 marks a major evolution in India’s digital economy. As more businesses shift operations online and mobile-first, data protection becomes non-negotiable.
For founders, SMB owners, enterprise leaders, and product builders, complying with the DPDP Act is not just about meeting legal requirements. It is about building a trustworthy digital presence, improving user confidence, and staying ahead of the regulatory curve.
At BrainBox Apps, our commitment is simple: every mobile app, website, and digital product we build aligns with the highest standards of privacy, security, and compliance.
If you would like us to audit your current digital product for DPDP compliance or help you design a fully compliant mobile app or website, our team is ready to assist. Contact us here. We'd be happy to assist.
————————————————
Some additional links & sources:
The Digital Personal Data Protection Act, 2023 : https://www.meity.gov.in/static/uploads/2024/06/2bf1f0e9f04e6fb4f8fef35e82c42aa5.pdf
https://www.meity.gov.in/documents/act-and-policies/digital-personal-data-protection-rules-2025-gDOxUjMtQWa?pageTitle=Digital-Personal-Data-Protection-Rules-2025
