Impact of the DPDP Act, 2023 on Internal Roles and Governance Structures

Introduction

The Digital Personal Data Protection (DPDP) Act, 2023 marks a significant shift in how organizations in India must structure their internal governance and assign responsibilities related to personal data processing. It places a clear emphasis on accountability, compliance, and data stewardship across leadership, legal, IT, and data protection roles.


1. Leadership and Board-Level Accountability

Senior leadership and boards are now expected to demonstrate oversight and commitment to data protection. Companies now must establish data governance frameworks that embed privacy into the design of business operations and IT systems. Data protection compliance is no longer an operational issue alone but a strategic risk that senior leadership must manage.


2. Legal and Compliance

The Company must interpret and ensure compliance with the Act with the help of expert lawyers particularly regarding consent management, data fiduciary obligations, grievance redressal, and cross-border data transfers. The company should seek legal help for -

  • Carrying of Privacy Impact assessments (PIA)
  • Drafting and reviewing privacy policies, Consent and notice, contracts, and data-sharing / Processing agreements
  • Advising on the legal basis for processing and legitimate uses of personal data
  • Ensuring readiness for audits, inquiries, and penalties by the Data Protection Board of India
  • Carrying out training and awareness programs for effective implementation of the Act

3. IT and Security

Technical safeguards must be implemented that aligned with the principles of purpose limitation, data minimization, and storage limitation. The IT and Security teams must ensure automation for

  • Enabling data portability, withdrawal of consent, and erasure requests
  • incident response to report personal data breaches

4. Data Protection Officer (DPO) and Governance Roles

Significant Data Fiduciaries (SDFs) are mandated to appoint a Data Protection Officer (DPO) based in India. The DPO acts as a bridge between the organization and the Data Protection Board, and must:

  • Monitor compliance with the DPDP Act.
  • Handle data principal grievances.
  • Advise on privacy risks and DPIAs.

5. Cross-Functional Collaboration

The Act demands integrated governance, requiring collaboration among legal, IT, HR, operations, and marketing teams. Training and awareness programs must be rolled out to ensure all functions handle personal data responsibly.


Conclusion

The DPDP Act redefines data privacy as a core governance concern, not just a legal or technical issue. Organizations must establish a multi-tiered governance structure with defined roles, responsibilities, and accountability mechanisms across functions to ensure lawful, fair, and transparent data processing.