DPDP Rule 6: Complete Guide to Data Fiduciary Obligations Under India's Digital Personal Data Protection Act 2023

DPDP Rule 6: Complete Guide to Data Fiduciary Obligations Under India's Digital Personal Data Protection Act 2023

The Digital Personal Data Protection Act (DPDPA) 2023 has ushered in a new era of data protection in India, and Rule 6 stands as one of its most critical provisions. For businesses operating in India's digital ecosystem, understanding Rule 6's requirements for Data Fiduciaries isn't just about compliance—it's about building trust with customers and avoiding severe penalties.

What is Rule 6 of the DPDP Act?

Rule 6 of the Digital Personal Data Protection Rules 2025 outlines the specific obligations and responsibilities that Data Fiduciaries must fulfill when processing personal data of Indian citizens. A Data Fiduciary, in simple terms, is any entity—whether a company, organization, or individual—that determines the purpose and means of processing personal data.

The rule establishes a comprehensive framework that governs how organizations must handle personal information, from collection to deletion, ensuring that individuals retain control over their digital footprint.

Who Qualifies as a Data Fiduciary?

Under DPDP Rule 6, any organization that decides why and how personal data is processed becomes a Data Fiduciary. This includes e-commerce platforms, fintech companies, healthcare providers, educational institutions, social media platforms, and even small businesses collecting customer information.

For instance, when an online retailer collects your shipping address and payment details, they become a Data Fiduciary. Similarly, a hospital maintaining patient records or a school storing student information falls under this definition.

Core Obligations Under DPDP Rule 6

Lawful Processing and Purpose Limitation

Data Fiduciaries must process personal data only for lawful purposes that are clearly specified to the individual. The data collected must be adequate, relevant, and limited to what's necessary for the stated purpose. Organizations cannot collect excessive information or use data for purposes beyond what was initially disclosed.

Obtaining Valid Consent

One of the fundamental requirements is obtaining clear, informed, and freely given consent from individuals before processing their data. The consent mechanism must be simple, easily accessible, and presented in clear language that an average person can understand. Consent requests buried in lengthy terms and conditions or obtained through pre-checked boxes don't meet the standard.

Data Accuracy and Quality

Rule 6 mandates that Data Fiduciaries must ensure the personal data they process is accurate and kept up to date. Organizations must implement reasonable measures to correct inaccurate data and delete information that's no longer necessary for the stated purpose.

Transparency Requirements

Data Fiduciaries must maintain complete transparency about their data processing activities. This includes providing individuals with clear information about what data is being collected, why it's being collected, how long it will be retained, and with whom it might be shared.

Implementing Security Safeguards

Organizations must implement appropriate technical and organizational measures to protect personal data from breaches, unauthorized access, and accidental loss. The security measures should be proportionate to the sensitivity of the data being processed and the potential harm that could result from a breach.

Data Principal Rights Under Rule 6

Rule 6 empowers individuals (Data Principals) with several rights that Data Fiduciaries must honor:

1. Right to Access: Individuals can request information about what personal data an organization holds about them and how it's being used.

2. Right to Correction: If data is inaccurate or incomplete, individuals have the right to have it corrected.

3. Right to Erasure: Also known as the "right to be forgotten," this allows individuals to request deletion of their personal data when it's no longer necessary or when they withdraw consent.

4. Right to Data Portability: Individuals can request their data in a structured, commonly used format and have it transferred to another Data Fiduciary.

5. Right to Grievance Redressal: Data Fiduciaries must establish mechanisms for individuals to lodge complaints and have them addressed within specified timelines.

Appointment of Data Protection Officer

For certain categories of Data Fiduciaries, particularly Significant Data Fiduciaries, Rule 6 requires the appointment of a Data Protection Officer (DPO). The DPO serves as the point of contact for data protection matters and ensures organizational compliance with DPDP requirements.

The DPO must have expert knowledge of data protection laws and practices and should have the authority and resources necessary to effectively perform their duties.

Data Breach Notification Requirements

Rule 6 establishes strict protocols for handling data breaches. When a breach occurs that's likely to cause harm to individuals, Data Fiduciaries must notify the Data Protection Board of India within 72 hours of becoming aware of the breach. Affected individuals must also be informed promptly.

The notification must include details about the nature of the breach, the type and volume of data affected, likely consequences, and measures being taken to address and mitigate the breach.

Data Retention and Deletion

Organizations cannot hold personal data indefinitely. Rule 6 requires Data Fiduciaries to establish clear data retention policies that specify how long different categories of data will be stored. Once the retention period expires or the purpose for processing is fulfilled, the data must be securely deleted or anonymized.

Cross-Border Data Transfer Restrictions

While Rule 6 doesn't completely prohibit international data transfers, it establishes conditions that must be met. Data Fiduciaries may transfer personal data to countries or territories notified by the Central Government, ensuring that adequate safeguards are in place to protect the data.

Penalties for Non-Compliance

The consequences of violating Rule 6 can be severe. The Data Protection Board of India has the authority to impose penalties up to INR 250 crores depending on the nature and gravity of the breach. Beyond financial penalties, non-compliance can result in reputational damage and loss of customer trust.

Implementation Challenges for Businesses

Many organizations face practical challenges in implementing Rule 6 requirements. These include updating legacy systems, training employees on data protection practices, establishing robust consent management systems, and creating processes for handling data subject requests efficiently.

Small and medium enterprises often struggle with resource constraints while trying to meet compliance requirements. However, non-compliance isn't an option given the potential penalties and the growing awareness among Indian consumers about their data rights.

How BMInfoTrade Can Help Your Organization Achieve DPDP Compliance

Navigating the complexities of DPDP Rule 6 doesn't have to be overwhelming. BMInfoTrade specializes in helping businesses across industries achieve comprehensive compliance with India's data protection regulations.

BMInfoTrade offers end-to-end DPDP compliance solutions including data mapping and inventory services, privacy policy development, consent management system implementation, Data Protection Impact Assessments, employee training programs, and ongoing compliance monitoring.

With deep expertise in Indian data protection law and practical experience helping organizations of all sizes, BMInfoTrade provides customized solutions that fit your business needs and budget. Their team of data protection experts understands both the legal requirements and the technical implementations necessary for effective compliance.

Whether you're just beginning your compliance journey or need to strengthen existing data protection practices, BMInfoTrade's consultants can conduct comprehensive audits, identify gaps in your current practices, and develop actionable roadmaps for achieving full compliance with Rule 6 and broader DPDP requirements.

Best Practices for Rule 6 Compliance

Organizations should adopt a privacy-by-design approach, embedding data protection considerations into every business process from the outset. Regular audits and assessments help identify vulnerabilities before they become problems.

Creating a culture of privacy within the organization through ongoing training ensures that every employee understands their role in protecting personal data. Documentation is crucial—maintaining detailed records of data processing activities, consent obtained, and security measures implemented demonstrates compliance efforts.

Establishing clear internal policies and procedures for handling data subject requests, managing breaches, and reviewing third-party data processors ensures consistent compliance across the organization.

The Future of Data Protection in India

Rule 6 represents just one component of India's evolving data protection landscape. As digital transformation accelerates and new technologies emerge, the regulatory framework will likely continue evolving. Organizations that establish strong data protection foundations now will be better positioned to adapt to future changes.

The Data Protection Board of India is expected to issue additional guidance and clarifications on various aspects of the DPDP Act, including more specific requirements for different industry sectors.

Taking Action on DPDP Rule 6 Compliance

The time to act is now. With enforcement mechanisms in place and growing regulatory scrutiny, organizations can no longer afford to delay compliance efforts. The first step is conducting a comprehensive assessment of your current data processing activities and identifying gaps against Rule 6 requirements.

For businesses seeking expert guidance through this complex regulatory landscape, partnering with experienced compliance consultants can accelerate the journey toward full compliance while minimizing business disruption.

Visit bminfotrade.com today to schedule a comprehensive DPDP compliance assessment and discover how their expert team can help your organization meet Rule 6 requirements efficiently and effectively.

Understanding and implementing DPDP Rule 6 isn't just about avoiding penalties—it's about demonstrating to your customers that you value their privacy and are committed to responsible data stewardship. In an era where data breaches make headlines regularly and consumers are increasingly privacy-conscious, compliance becomes a competitive advantage that builds lasting customer trust and loyalty.