Understanding Sensitive Personal Data in India

Introduction

Understanding what constitutes sensitive personal data is crucial for organizations operating in India. This guide explains the regulatory framework and protection requirements under Indian data protection laws.

Definition Under SPDI Rules 2011

The Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011 define sensitive personal data or information as:

• Passwords
• Financial information such as bank account, credit card, debit card details
• Physical, physiological and mental health condition
• Sexual orientation
• Medical records and history
• Biometric information
• Any detail relating to the above as provided to body corporate for providing service
• Any information received by body corporate for processing, stored or processed under lawful contract

Digital Personal Data Protection Act (DPDPA) 2023

The DPDPA introduces the concept of "sensitive personal data" which includes:

• Financial data
• Health data
• Official identifier
• Sex life
• Sexual orientation
• Biometric data
• Genetic data
• Transgender status
• Intersex status
• Caste or tribe
• Religious or political belief or affiliation

Protection Requirements

Under SPDI Rules

• Prior consent before collection
• Purpose limitation and data minimization
• Reasonable security practices
• Disclosure restrictions
• Transfer limitations

Under DPDPA

• Explicit consent requirements
• Enhanced security measures
• Stricter processing limitations
• Additional compliance obligations

Compliance Obligations

Technical Measures

• Encryption of sensitive data
• Access controls and authentication
• Secure data transmission
• Regular security audits

Organizational Measures

• Privacy policies and notices
• Staff training and awareness
• Data handling procedures
• Incident response protocols

Penalties and Enforcement

Non-compliance with sensitive personal data protection requirements can result in:

• Monetary penalties under DPDPA
• Compensation to affected individuals
• Regulatory enforcement actions
• Reputational damage

Best Practices

• Conduct regular data audits
• Implement privacy by design principles
• Maintain detailed processing records
• Establish clear consent mechanisms
• Regular compliance assessments