DPDP Rules: In The Age Of AI-Driven Digital Ecosystem, Data Stewardship Is The New Norm

The Ministry of Electronics and Information Technology (MeitY) on Friday (November 14) officially notified the Digital Personal Data Protection (DPDP) Rules, 2025, paving the way for the full operationalisation of the DPDP Act, 2023.

The rules are aimed at creating a citizen-focused and innovation-friendly framework for the responsible use of digital personal data. The companies concerned have been provided an 18-month window for a smooth, phased transition to the newly notified rules.

Users should be confident that their data are protected, and that the data are in safe hands. Now, the users have a way to secure their data [with the DPDP Act, 2023]. The onus is now on the organisations and companies, as to how they use the data of customers and individuals

— Karthik Prabhakar, Managing Partner, PeerCapital

According to Prabhakar, privacy-enhancing technologies are emerging as the next billion-dollar opportunity in enterprise infrastructure, and investors are backing companies on future-proof data governance.

Breaking down the DPDP Rules, Prabhakar mentions that the specifications are straightforward for the companies managing personal or private data: if you need data, better manage it efficiently; use data, but make sure you manage it.

Adapting To Compliance 

Since the DPDP Act was passed in 2023, and the DPDP Rules were notified now, companies have had ample time to adapt to the compliance and make the required amendments to their functional model. Now, they have 18 months to incorporate the newly notified rules.

Digital platforms have already been taking measures for investors and enterprises to make a smooth transition to the DPDP compliance. Giving priority to data protection, AI-based data privacy and governance platform Redacto has been developing the AI-driven privacy infrastructure for enterprises to adopt, aligning with the compliance framework.

This includes:

• Automating breach notifications,
• consent management,
• vendor accountability,
• and retention governance through a unified, intelligent platform.

A New Phase Of Accountability

Shashank Karincheti, Co-Founder & Chief Product Officer (CPO), Redacto, says, "With the DPDP Rules now in force, enterprises are entering a new phase of accountability. This is where intent must turn into action. Every organisation that collects or processes personal data will now be judged by the clarity of its systems and the discipline of its governance. Privacy has moved from being a legal topic to an operational reality that defines trust and credibility."

As the DPDP Rules blend a simplified approach, adequate transition time, and a technology-neutral framework, there is little room for negative implications. "For most companies, compliance will not come from adding new paperwork, but from rethinking how data flows within their systems. That means mapping every interaction, validating every access, and creating a single source of truth for personal information across teams and vendors. This requires precision and structure, not just policy," Karincheti underscores. 

Therefore, the time has come for companies and enterprises to take a cautious path while handling data.