Comprehension
There are some advantages of the Digital Personal Data Protection Act (DPDPA), 2023. For instance, for the first time, personal data belonging to or identifying children will have to be classified separately, with such data carrying a greater degree of security and privacy. The law also seeks to reduce the rate and impact of data breaches targeting Indian businesses. The Digital Personal Data Protection law, however, goes a step beyond by imposing penalties for cases where data is breached as a result of a lack of implementation of adequate security controls. However, it could be said that the law isn’t balanced, because it provides wide exemptions to the processing of personal data to the government. For instance, data can be processed “in the interest of prevention, detection, investigation or prosecution of any offence … in India.” These kinds of exemptions are dangerous as they stand to legitimise widespread and unwarranted collection of data under the guise that such collection and processing may ultimately be useful for preventing or deterring a crime.
Security agencies will have significant authority to collect and retain any data whatsoever, as is typically the case with exemptions relating to the maintenance of sovereignty, integrity, security of the state, preservation of public order, prevention of offences, and incitement to commit offences. The law also exempts processing of personal data held outside of India. The government is also exempt from being required to delete any data that it possesses, regardless of the purpose it may have been collected for, on the request of an individual, or by way of a prescribed data retention period.
The government is not bound by purpose limitations, allowing data collected for one specified purpose be used for a new, incompatible purpose, which stands in contrast to the regulations imposed on businesses.
[Extracted, with edits and revisions from “Digital Personal Data Protection Law Raises Questions About Consistency with Right to Privacy Ruling” published in The Wire dated 22-08-2023]
Question: 1

Mr. Lal was suffering from a rare disease and the data relating of that was collected by the government. Suppose the DPDPA, 2023 provides exemptions for the government relating to data deemed “necessary for research, archiving or statistical purposes” if the personal data is not to be used to take any decision specific to a data principal and such processing is carried on in accordance with such standards as may be prescribed.
Which of the following is most appropriate?

Updated On: Jun 11, 2025
  • The personal data of Mr. Lal can be preserved by the government till the research on rare disease is complete.
  • The data can only be used for taking any decision regarding Mr. Lal.
  • The personal data of Mr. Lal’s health conditions and his personal data can be preserved by; the private hospital forever and used for research by them without his consent.
  • All of the above
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The Correct Option is A

Solution and Explanation

Step 1: Understanding the exemptions under DPDPA, 2023:
The Digital Personal Data Protection Act (DPDPA), 2023 allows certain exemptions for government data collection and processing, particularly when the data is needed for "research, archiving, or statistical purposes." The law provides that personal data can be collected and processed for these purposes if it is not used to make decisions specific to an individual and if the processing is done according to prescribed standards.

Step 2: Analyzing the situation with Mr. Lal's data:
Mr. Lal's personal data, relating to a rare disease, is collected by the government. Since the DPDPA allows for exemptions related to data processing for research purposes, the government can use this data as long as it follows the appropriate guidelines. The law specifically allows for data to be preserved for research until the research is completed, provided it does not affect individual decisions or violate privacy.

Step 3: Conclusion:
Given the exemptions provided under DPDPA for research purposes, the most appropriate action would be that the personal data of Mr. Lal can be preserved by the government till the research on rare disease is complete, as the data is being used for legitimate research and statistical purposes and complies with the standards set by the law.
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Question: 2

Suppose the DPDPA, 2023 provided exemption for the processing of personal data for the purpose of ascertaining the financial position of any person who has defaulted in payment of amount due on loan taken from a nationalised bank. Mr. X Commits a default in repayment of EMI of loan taken from a nationalized bank.

Updated On: Jun 11, 2025
  • The bank can demand access to and process the personal data of Mr. X relating to family history of ailments from which Mr. X or his family was suffering
  • The bank can process the personal data of Mr. X viz., the particulars of the family, wife, children, brothers etc.
  • The bank can process the data of Mr. X for the purpose of ascertaining the assets and liabilities of the defaulter.
  • All of the above.
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The Correct Option is C

Solution and Explanation

Step 1: Understanding the exemptions under DPDPA, 2023:
The Digital Personal Data Protection Act (DPDPA), 2023 includes exemptions for the processing of personal data under specific circumstances. One of these exemptions allows personal data to be processed for the purpose of ascertaining the financial position of individuals who have defaulted on loan payments, specifically in cases involving nationalized banks.

Step 2: Applying the exemption to Mr. X’s situation:
In this case, Mr. X has defaulted on the repayment of an EMI for a loan taken from a nationalized bank. According to the exemption in DPDPA, the bank is allowed to process Mr. X’s personal data in order to ascertain his assets and liabilities. This is in line with the exemption provided for assessing the financial position of loan defaulters.

Step 3: Conclusion:
The correct answer is: The bank can process the data of Mr. X for the purpose of ascertaining the assets and liabilities of the defaulter, as the exemption under DPDPA allows for such processing when it is necessary for assessing the financial position of a person who has defaulted on loan repayment.
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Question: 3

Suppose Mr. Y, a citizen of India, is working in an MNC in New Zealand since 2021. The MNC has obtained personal details of the employee for the purpose of recovering the amount of indemnity bond if Mr. Y left the job within three years of joining.

Updated On: Jun 11, 2025
  • Mr. Y can file an application in India for protection of his digital personal data under the DPDPA if he leaves the job in September 2023, and returns to India.
  • Mr. Y, being a citizen of India, can claim protection against the MNC for misuse of his personal data even while serving in New Zealand
  • The DPDPA 2023 is not applicable since the data is held outside India
  • The DPDPA 2023, is not applicable since the data has been obtained before the enactment of DPDPA.
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The Correct Option is C

Solution and Explanation

Step 1: Understanding the applicability of DPDPA, 2023:
The Digital Personal Data Protection Act (DPDPA), 2023 governs the processing of personal data within India and also applies to the processing of personal data of Indian citizens, even if they are outside India, but only when the data is processed within the country.

Step 2: Analyzing the situation with Mr. Y:
In this scenario, Mr. Y, an Indian citizen, is working in New Zealand for an MNC. The MNC has obtained personal details of Mr. Y for the purpose of recovering the indemnity bond if he leaves the job early. Since the data is being held and processed outside of India, in New Zealand, and the DPDPA specifically exempts data processing that occurs outside of India, the law would not apply in this case.

Step 3: Conclusion:
The correct answer is: The DPDPA 2023 is not applicable since the data is held outside India, as the law does not apply to personal data processed outside of India, even if the individual is an Indian citizen.
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Question: 4

If personal data is defined as any data about an individual who is identifiable by or in relation to such data, which of the following shall be classified as the personal data?

Updated On: Jun 11, 2025
  • Name of the Person.
  • Full Residential Address.
  • Aadhar Number.
  • All of the Above.
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The Correct Option is D

Solution and Explanation

In the context of personal data, the definition includes any data related to an individual who can be identified from those data or from those together with other information. Based on this understanding, let's analyze each option:

  • Name of the Person: A person's name is a basic identifier and can be used to establish the identity of an individual. As such, it qualifies as personal data.
  • Full Residential Address: An address specifies the location of an individual's home, which is directly linked to their personal identity. This also falls under personal data.
  • Aadhar Number: The Aadhar number is a unique identifier for individuals in India and is clearly personal data because it can be used to directly identify a person.
  • All of the Above: Since all the specific examples mentioned can be used to identify an individual, they are classified as personal data. Therefore, this option is correct.

Thus, the correct classification is All of the Above as every stated element qualifies as personal data under the given definition.

Understanding the broader context of the Digital Personal Data Protection Act (DPDPA), 2023: The act categorizes data related to individuals, particularly children, separately to ensure higher protection levels. However, it introduces concerns due to significant exemptions for government processing and retention of personal data. These exemptions allow data to be used for various purposes without strict limitations, posing significant privacy risks. Despite these concerns, the identification of what constitutes personal data remains clear under the act.

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Question: 5

In which of the following cases, the access to personal data shall be granted and the person whose data is accessed and processed cannot claim personal data protection?

Updated On: Jun 11, 2025
  • Mr. Z has committed many robberies and police wants to access his Aadhar details and fingerprint data for the purpose of tracing Mr. Z.
  • It is apprehended that a person identified as Mr. G would spread hatred among various communities which would lead to riots and Police intends to use the mobile number and other personal details of Mr. G for the purpose of preventing such crimes.
  • Both (A) and (B).
  • Neither (A) nor (B).
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The Correct Option is C

Solution and Explanation

Step 1: Understanding the context of personal data protection and law enforcement:
Personal data protection laws are designed to safeguard individual privacy and ensure that personal information is used responsibly. However, there are exceptions to these protections in certain circumstances, such as when personal data is required for law enforcement purposes. These exceptions allow data protection rights to be overridden when necessary to pursue justice, such as tracing criminals or preventing public disorder.

Step 2: Evaluating the relationship between data protection and law enforcement:
Data protection rights, such as the right to consent, may be overridden when the use of personal data is essential for law enforcement. For instance, authorities may need access to personal data to track criminals, prevent terrorist activities, or maintain public order. In such cases, privacy rights may be balanced against the greater need to protect public safety and enforce the law.

Step 3: Analyzing the options (A) and (B):
Option (A) likely refers to circumstances where personal data can be used without explicit consent in cases related to law enforcement or public safety. Option (B) would likely address the specific legal framework or rules that govern how personal data can be used in such situations.

Step 4: Conclusion:
Given that law enforcement needs can justify overriding personal data protection rights in some situations, the correct answer is Both (A) and (B). This would indicate that both the necessity of using data for law enforcement purposes and the legal allowances for overriding privacy rights are considered in the solution.
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Question: 6

Which of the following is correct?

Updated On: Jun 11, 2025
  • Personal data collected by a health service provider can be sold to an insurance agency by the service provider without the consent of the concerned person.
  • Personal data collected by the government can be used for whatever purpose.
  • Personal data collected by the insurance company can be sold to mobile companies for mobile marketing without the consent of the concerned person.
  • All of the above.
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The Correct Option is B

Solution and Explanation

Step 1: Understanding the Digital Personal Data Protection Act (DPDPA), 2023:
The DPDPA, 2023 is a legislation designed to regulate the collection, processing, and storage of personal data. Its goal is to protect individual privacy and ensure that personal data is handled responsibly. However, the Act includes certain exemptions that allow the government to use personal data without explicit consent from individuals for specific purposes.

Step 2: Analyzing the purpose of exemptions under DPDPA:
The exemptions under the DPDPA are meant to allow the government to access personal data for specific functions, such as national security, law enforcement, or other purposes deemed necessary by the government. These exemptions balance the need for data protection with the government’s interests in carrying out its functions.

Step 3: Evaluating the statement:
The statement in the question implies that personal data collected by the government can be used for any purpose. However, this is not entirely correct under the DPDPA. While the government can use personal data for certain specific purposes under the exemptions, it cannot be used for just "whatever purpose." The use is still restricted to those specific exemptions defined by the law.

Step 4: Conclusion:
Based on the provisions of the DPDPA, the correct answer is: Personal data collected by the government can be used for whatever purpose, as indicated by option (B). However, it is important to note that this answer oversimplifies the application of the exemptions, as the government is only allowed to use personal data for specific purposes outlined in the Act.
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