Role and Duties of a Data Protection Officer (DPO) in Indian Companies under the DPDP Act, 2023

Posted On - 30 September, 2025 • By - Jidesh Kumar

Executive Summary

The Digital Personal Data Protection Act, 2023 (DPDP Act) introduces the requirement for Significant Data Fiduciaries (SDFs) to appoint a Data Protection Officer (DPO). The DPO is a central figure in ensuring compliance with India’s new data protection regime, responsible for overseeing internal practices, managing risks, handling grievances, and engaging with regulators.

Introduction: Why the DPO Role Matters

The DPO is not merely a compliance officer, it is the anchor of privacy governance in an organization. By mandating the role for SDFs, the DPDP Act ensures that companies with high data processing risks have a dedicated individual to:

  • Monitor compliance.
  • Ensure individuals’ rights are protected.
  • Serve as the single point of contact with the Data Protection Board of India.
  • Given India’s scale of digital adoption and data-driven business models, the DPO role will become as critical as Chief Compliance Officers or Chief Risk Officers.

Statutory Requirement for DPOs under the DPDP Act

The DPDP Act requires that Significant Data Fiduciaries must appoint a Data Protection Officer who:

  • Is based in India.
  • Reports to the Board of Directors or equivalent governance body.
  • Acts as the point of contact for grievance redressal.
  • Interfaces with the Data Protection Board of India.
  • This requirement applies only to SDFs, but many companies outside this category may voluntarily appoint a DPO to build trust and demonstrate accountability.

Core Duties of a DPO

1. Compliance Oversight: The DPO must monitor the organization’s compliance with the DPDP Act, including:

  • Consent and notice frameworks.
  • Retention and erasure practices.
  • Handling of rights requests.
  • Cross-border transfer compliance.

2. Grievance Handling: The DPO is the nodal officer for grievance redressal. Responsibilities include:

  • Responding to complaints from data principals within statutory timelines.
  • Ensuring escalation procedures are followed.
  • Liaising with the Data Protection Board if grievances are not resolved internally.

3. DPIA Supervision: The DPO must oversee Data Protection Impact Assessments for high-risk processing. Duties include:

  • Reviewing DPIAs for adequacy.
  • Advising on risk mitigation.
  • Approving or recommending modifications to new projects.

4. Regulatory Liaison: The DPO is the single point of contact for the Data Protection Board. This includes:

  • Cooperating during audits or investigations.
  • Submitting compliance reports.
  • Responding to regulatory queries.

5. Training and Awareness: The DPO must foster a culture of privacy compliance by:

  • Conducting training sessions for employees.
  • Issuing guidance on handling personal data.
  • Raising awareness of privacy risks across business functions.

Practical Role Descriptions in Indian Companies

Reporting Line: The DPO must report directly to the Board or CEO to ensure independence. Placement under the IT or legal department risks conflicts of interest.

Day-to-Day Responsibilities

  • Monitoring data flows across departments.
  • Reviewing contracts with vendors for DPDP compliance.
  • Approving consent and notice mechanisms.
  • Supervising breach notification protocols.
  • Managing grievance redressal portals.

Required Skills

  • Legal expertise in privacy and technology law.
  • Technical knowledge of IT systems, cybersecurity, and data management.
  • Communication skills to engage with regulators and the public.
  • Business acumen to balance compliance with commercial objectives.

Conflict of Interest

  • The DPO should not hold roles such as Chief Marketing Officer or Head of IT Security where decisions could conflict with privacy oversight.
  • Independence is critical to credibility with regulators.

Comparison with Global Models

GDPR (EU)

  • Requires DPOs for large-scale monitoring or processing of sensitive data.
  • DPO must be independent and may not be dismissed for carrying out duties.
  • DPOs are mandatory across both private and public sectors in defined cases.

LGPD (Brazil)

  • Requires a DPO (called “Data Protection Officer”) but allows flexibility in designation.
  • Functions are advisory and oversight-focused.

PDPA (Singapore)

  • All organizations must appoint a DPO, though smaller entities may outsource the role.

India’s model diverges by:

  • Restricting DPOs to Significant Data Fiduciaries only.
  • Requiring the DPO to be India-based, ensuring local accountability.

Sector-Specific Expectations

1. Banking and Financial Services: DPOs must oversee consent flows for digital lending, KYC verification, and transaction monitoring. Coordination with RBI’s cybersecurity and KYC compliance regimes will be essential.

2. Healthcare and Health-Tech: DPOs must ensure lawful processing of sensitive health data. DPIAs will be critical for new diagnostic AI tools and telemedicine platforms.

3. E-Commerce and Retail: DPOs must manage multi-lingual consent and notice systems for nationwide users. Oversight of loyalty programs and targeted marketing is critical.

4. IT and ITES: DPOs in outsourcing companies must ensure that processing for global clients complies with both DPDP and foreign laws (e.g., GDPR).

5. Telecom and Social Media: DPOs will be central to handling high-volume rights requests. Oversight of profiling, targeted advertising, and democratic risks will be expected.

Compliance Strategies for Appointing a DPO

 1. Early Identification: Even if not yet classified as an SDF, companies should identify potential candidates for the DPO role.

2. Governance Integration: Place the DPO within compliance or risk frameworks but ensure direct reporting to the Board.

3. Training and Certification: Invest in certifications (e.g., CIPP/E, CIPP/A, DSCI programs) to build expertise.

4. Resource Support: Provide adequate staff and technology tools for monitoring and grievance handling.

5. External Expertise: SMEs may outsource the DPO role to external consultants, provided independence is ensured.

Risks of Non-Compliance

  • Regulatory Penalties: Failure to appoint a DPO or ignoring duties may attract fines.
  • Operational Gaps: Absence of oversight may lead to breaches or mishandling of rights requests.
  • Reputational Harm: Consumers and investors increasingly demand visible privacy accountability.
  • Conflict of Interest Issues: Misplaced DPO roles may undermine credibility with regulators.

Conclusion & Key Takeaways

The DPO under the DPDP Act is more than a statutory requirement—it is the linchpin of data protection governance in Indian companies.

Key takeaways:

  • Appointment is mandatory for Significant Data Fiduciaries.
  • Duties include compliance oversight, grievance handling, DPIA supervision, and regulatory liaison.
  • DPOs must be India-based and report directly to the Board.
  • Independence and resource allocation are critical for effectiveness.
  • Sectoral nuances will shape day-to-day expectations in banking, healthcare, e-commerce, IT, and telecom.

For Indian businesses, preparing for the DPO role is not just about compliance, it is about building trust with consumers, regulators, and global partners. Companies that integrate the DPO into governance early will be better placed to navigate the DPDP regime with confidence.

Contributed by – Aurelia Menezes