Chapter 10 · Topic 10.3 · Prelims + Mains3 of 3

Cyber Security: Data protection: the DPDP Act and the IT Rules

Key points

  • DPDP Act 2023: Data Fiduciary, Data Principal, 7 principles.
  • Children: parental consent, no tracking or targeted ads.
  • Penalty up to Rs 250 crore. Appeals to TDSAT.
  • IT Rules 2021: acknowledge in 24 hours, resolve in 15 days.

Prelims box: facts and traps

ItemDetail
DPDP Rules notified14 Nov 2025, 18-month phased compliance
Highest penaltyUp to Rs 250 crore (no security safeguards)
Breach notice, childrenUp to Rs 200 crore each
AppealsTDSAT
  • NCIIPC was designated on 16 January 2014 (Gazette notification G.S.R. 18(E)) as the national nodal agency under section 70A of the IT Act, as "an organisation under the National Technical Research Organisation".
  • Trap: security and breach-notice duties did not start on the Gazette date. The Rules were published on 13 November 2025, but rule 1(4) brings rules 3, 5 to 16, 22 and 23, including rules 6 and 7, into force only eighteen months later.
  • Trap: Board penalties do not go to victims. Section 34 credits them to the Consolidated Fund of India.

Data protection: the DPDP Act and the IT Rules

The Digital Personal Data Protection Act, 2023 sets rules for Data Fiduciaries (persons, companies and government bodies that process data) and rights for Data Principals (the persons the data relate to). A shopping app is a Data Fiduciary and you are the Data Principal. It rests on seven principles: consent and transparency, purpose limitation, data minimisation (collect only what is needed), accuracy, storage limitation, security safeguards and accountability. Children’s data may be processed only with parental consent, without tracking, behavioural monitoring or targeted advertising. Complaints go to the Data Protection Board (PIB, 9 Aug 2023). Mains 2024 asked about its context and salient features.

Quick answerThe DPDP Act, 2023 protects personal data. Data users must take consent and keep it safe, or face fines up to Rs 250 crore. The IT Rules, 2021 make platforms act on complaints within 24 hours.
Asked by UPSCUPSC Mains 2024 · GS Paper III · Q10 · 10 marks

Describe the context and salient features of the Digital Personal Data Protection Act 2023.

ItemDetailSource
DPDP Rules notified14 Nov 2025; 18-month phased compliancePIB, 17 Nov 2025
Highest penaltyUp to Rs 250 crore: failing to keep reasonable security safeguardsPIB, 2025
Breach notice; childrenUp to Rs 200 crore eachPIB, 2025
AppealsTDSAT hears appeals against the BoardPIB, 2025

Penalties are maximums under the Act, not amounts levied.

Mains 2018 asked about the strengths and weaknesses of the Justice B. N. Srikrishna Committee Report. Strengths: consent and a regulator. Concerns: wide exemptions for the State and data localisation costs (keeping data in India).

Asked by UPSCUPSC Mains 2018 · GS Paper III · Q19 · 15 marks

Data security has assumed significant importance in the digitized world due to rising cyber crimes. The Justice B. N. Srikrishna Committee Report addresses issues related to data security. What, in your view, are the strengths and weaknesses of the Report relating to protection of personal data in cyber space?

Platforms are governed by the IT (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021. An intermediary is a platform carrying others’ content. It must appoint a Grievance Officer who acknowledges a complaint within 24 hours and resolves it within 15 days. It must remove content that violates a user’s dignity, such as intimate images, within 24 hours of a complaint (PIB, 25 Feb 2021). Mains 2026 asked how fake news threatens internal security and public order.

Asked by UPSCUPSC Mains 2026 · GS Paper III · Q9 · 10 marks

Explain how fake news and disinformation pose threat to Internal Security and Public Order in Indian context? In this regard, discuss salient features of amendments in respect of Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules 2021.

What UPSC asks: Prelims: DPDP’s 7 principles. Mains: fines up to Rs 250 crore, Rules of 14 Nov 2025.

Mains box: analysis and answer points

  • DPDP Act: context and features.
  • Fake news: IT Rules and internal security.

Practice

Practice MCQs (8)

Q1 · Battle IAS practice

CERT-In's directions of April 2022 on incident reporting, log retention and record-keeping were issued under which provision of the Information Technology Act, 2000?

Answer (c) & explanation

The directions were issued under section 70B(6). Section 70B, inserted by the IT (Amendment) Act 2008, makes the Indian Computer Emergency Response Team the national agency for incident response, with functions such as collecting and analysing incident information, issuing alerts, emergency measures, coordination and guidelines. Sub-section (6) empowers CERT-In to 'call for information and give direction to the service providers, intermediaries, data centres, body corporate and any other person', and sub-section (7) makes non-compliance punishable with up to one year's imprisonment, a fine up to one lakh rupees, or both. Section 70A deals with the nodal agency for critical information infrastructure (NCIIPC), section 69A with blocking of online content, and section 79 with the safe harbour for intermediaries.

Q2 · Battle IAS practice

The National Critical Information Infrastructure Protection Centre (NCIIPC), the national nodal agency for protecting critical information infrastructure, functions as a unit of

Answer (a) & explanation

NCIIPC was designated on 16 January 2014 (Gazette notification G.S.R. 18(E)) as the national nodal agency under section 70A of the IT Act, as 'an organisation under the National Technical Research Organisation'. The NCIIPC Rules, 2013 place it under the administrative control of NTRO, the technical intelligence agency that reports to the National Security Adviser. Its job is to protect computer resources whose incapacitation would have a debilitating impact on national security, the economy, public health or safety, in sectors such as power and energy, banking and insurance, telecom, transport, government, strategic and public enterprises, and health. CERT-In, under the IT ministry, handles incident response for the whole cyberspace, and MHA's I4C deals with cybercrime.

Q3 · Battle IAS practice

Consider the following statements:
1. The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) is the appellate tribunal under the Information Technology Act, 2000, having taken over the role of the Cyber Appellate Tribunal.
2. An appeal against an order of the Data Protection Board of India lies to the TDSAT and must be filed within sixty days of receiving the order.
Which of the statements given above is/are correct?

Answer (c) & explanation

Both statements are correct. The Finance Act, 2017 merged several tribunals, and section 48 of the IT Act now provides that the Telecom Disputes Settlement and Appellate Tribunal shall be the Appellate Tribunal under the Act from the commencement of Part XIV of Chapter VI of the Finance Act, 2017; the separate Cyber Appellate Tribunal ceased to exist. The DPDP Act, 2023 defines 'Appellate Tribunal' in section 2(a) as the TDSAT, and section 29 lets a person aggrieved by a Board order appeal within sixty days; the tribunal tries to dispose of appeals within six months and, as far as practicable, works as a digital office. Using one tribunal for both telecom and data disputes reflects the policy of reducing the number of specialised tribunals.

Q4 · Battle IAS practice

Consider the following statements about the Data Protection Board of India under the Digital Personal Data Protection Act, 2023:
1. It is a body corporate having perpetual succession and a common seal.
2. Its Chairperson and Members hold office for a term of two years and are eligible for re- appointment.
3. It can award imprisonment to a Data Fiduciary's officers for a serious personal data breach.
Which of the statements given above is/are correct?

Answer (a) & explanation

Statements 1 and 2 are correct. Section 18 establishes the Board as a body corporate with perpetual succession and a common seal, able to hold property, contract, and sue and be sued. Section 20 sets a two-year term with eligibility for re-appointment, and section 19 requires at least one member to be an expert in law. Under section 28 the Board functions as an independent body and, as far as practicable, as a digital office, with proceedings conducted using techno-legal measures. Statement 3 is wrong: the DPDP Act is a civil-penalty law. The Board can impose monetary penalties listed in the Schedule after an inquiry, up to Rs 250 crore for failure to take reasonable security safeguards, but it has no power to imprison anyone; it has civil-court powers only for summoning, evidence and inspection.

Q5 · Battle IAS practice

Under the Digital Personal Data Protection Act, 2023, which one of the following is NOT an additional obligation of a Significant Data Fiduciary?

Answer (d) & explanation

Section 10 lets the Central Government notify a Data Fiduciary or class as a Significant Data Fiduciary (SDF) on the basis of factors such as the volume and sensitivity of data, risk to Data Principals, impact on sovereignty and integrity of India, electoral democracy, State security and public order. An SDF must appoint a Data Protection Officer based in India who is responsible to the Board of Directors and is the point of contact for grievances, appoint an independent data auditor, and undertake periodic Data Protection Impact Assessments, periodic audits and other prescribed measures. The DPDP Rules add that an SDF must carry out the DPIA and audit once every twelve months and verify that algorithmic software it uses does not risk the rights of Data Principals. There is no requirement of prior CERT-In approval for processing; CERT-In handles incident response, not data-processing licences.

Q6 · Battle IAS practice

Consider the following pairs: Section of the IT Act, 2000 — Offence
1. Section 65 — Tampering with computer source documents
2. Section 66C — Identity theft
3. Section 66E — Cheating by personation using a computer resource
4. Section 66F — Cyber terrorism
How many of the pairs given above are correctly matched?

Answer (c) & explanation

Pairs 1, 2 and 4 are correct. Section 65 punishes knowingly concealing, destroying or altering computer source code that must be kept by law (up to three years, a fine up to two lakh rupees, or both). Section 66C punishes fraudulent use of another person's electronic signature, password or other unique identification feature (up to three years and a fine up to one lakh rupees). Section 66F, cyber terrorism, covers acts such as denying access or penetrating systems with intent to threaten the unity, integrity, security or sovereignty of India, and carries up to life imprisonment. Pair 3 is wrong: section 66E punishes violation of privacy, that is, capturing, publishing or transmitting images of a person's private area without consent. Cheating by personation using a computer resource is section 66D.

Q7 · Battle IAS practice

Consider the following statements about amendments made by the Digital Personal Data Protection Act, 2023:
1. It omits section 43A of the IT Act, which made a body corporate liable to pay compensation for negligence in maintaining reasonable security practices for sensitive personal data.
2. It amends section 8(1)(j) of the Right to Information Act, 2005 so that information which relates to personal information is exempt from disclosure.
3. Penalties imposed by the Data Protection Board are paid as compensation to the affected Data Principals.
Which of the statements given above is/are correct?

Answer (b) & explanation

Statements 1 and 2 are correct. Section 44(2) of the DPDP Act omits section 43A of the IT Act, along with the related rule-making power, so the 2011 'SPDI Rules' framework for sensitive personal data is replaced by the new law; this part commences 18 months after the 13 November 2025 notification. Section 44(3) substitutes RTI section 8(1)(j) with 'information which relates to personal information', removing the earlier test of whether disclosure had any relationship to public activity or interest. This change has been criticised by transparency activists. Statement 3 is wrong: section 34 says all sums realised by way of penalties imposed by the Board are credited to the Consolidated Fund of India. Unlike section 43A, the new Act has no compensation route to the individual, which is one of the main criticisms of the law.

Q8 · Battle IAS practice

With reference to the Digital Personal Data Protection Rules, 2025, consider the following statements:
1. The reasonable security safeguards a Data Fiduciary must adopt include encryption, obfuscation, masking or the use of virtual tokens mapped to personal data.
2. On a personal data breach, the Data Fiduciary must inform the Data Protection Board without delay and give it a detailed report within seventy-two hours of becoming aware of the breach.
3. The security-safeguard and breach-intimation obligations became enforceable on the date the Rules were published in the Official Gazette.
Which of the statements given above is/are correct?

Answer (d) & explanation

Statements 1 and 2 are correct. Rule 6 lists minimum safeguards: data security measures such as encryption, obfuscation, masking or virtual tokens; access control; visibility through logs and monitoring; backups for continued processing; retaining logs and personal data for one year to detect and investigate unauthorised access; and contract clauses with Data Processors. Rule 7 requires a Data Fiduciary to tell affected Data Principals and the Board without delay, and to send the Board a detailed report within seventy-two hours (or longer if the Board allows), covering the facts, mitigation steps, findings on who caused it, and remedial measures. Statement 3 is wrong: the Rules were published on 13 November 2025, but rule 1(4) brings rules 3, 5 to 16, 22 and 23, including rules 6 and 7, into force only eighteen months after publication, in line with the phased commencement of the Act itself.

0 / 0 correct

Prelims PYQs on this topic (1)

UPSC Prelims 2017 · GS Paper I

In India, it is legally mandatory for which of the following to report on cyber security incidents ?

  • 1. Service providers
  • 2. Data centres
  • 3. Body corporate

Select the correct answer using the code given below :

Answer (d) & explanation

All three must report cyber incidents (d). Under Section 70B of the IT Act, 2000 and the CERT-In Rules, 2013, service providers (1), data centres (2), body corporates (3) and intermediaries must report cyber security incidents to CERT-In (the Indian Computer Emergency Response Team, under MeitY). CERT-In's April 2022 directions set a six-hour reporting deadline. They also require logs to be kept for 180 days, and VPN providers must store user details for five years.

Critical sectors are protected by NCIIPC under Section 70A. Notice the related laws: the Digital Personal Data Protection Act, 2023 and its 2025 Rules, which add a duty to report data breaches to the Data Protection Board.

Answer as per the official UPSC answer key.

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Mains PYQs on this topic (1)

Write an answer

In 150 words, explain the significance of Cyber Security with one recent example.

Flashcards (5)

How many DPDP principles?

Seven.

Highest DPDP penalty?

Up to Rs 250 crore.

When were DPDP Rules notified?

14 November 2025.

Who hears appeals against the Data

Protection Board? TDSAT.

IT Rules 2021 grievance timelines?

Acknowledge 24 hours; resolve 15 days.

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