DPDP Rules 2025 · Rule 5 · Group BUpcoming · 13 May 2027

Processing of personal data for provision or issue of subsidy, benefit, service, certificate, licence or permit by State and its instrumentalities

Status: Upcoming
Applies from: 13 May 2027Rule 1(4)
Penalty: Up to Rs 50 croreAct, Schedule, item 7
Binds: The State and its instrumentalities

In plain English

Applies when the State or one of its instrumentalities processes personal data to provide a subsidy, benefit, service, certificate, licence or permit under s. 7(b) of the Act, the legitimate use that lets government bodies proceed without consent where the person has already consented to a related use or the data sits in a government database. Such processing must follow the standards in the Second Schedule: lawful, purpose-limited, accurate, retained only while needed, secured, with an intimation to the person and a contact point.

Sub-rule (2) pins down what "under law", "under policy" and "using public funds" mean, reaching down to local authorities and their funds.

What you must do

If you process personal data for a government body under s. 7(b), build the Second Schedule standards into the engagement, including the intimation and contact point.
Record the legal, policy or public-funds basis for each scheme you process data for.

Gazette text · Rule 5Processing the personal data of a Data Principal under this rule shall be done following the standards specified in Second Schedule.

(1)
Processing the personal data of a Data Principal under this rule shall be done following the standards specified in Second Schedule.
(2)
In this rule and the Second Schedule, the reference to any subsidy, benefit, service, certificate, licence or permit that is provided or issued—
1. (a)
  under law shall be construed as a reference to provision or issuance of such subsidy, benefit, service, certificate, licence or permit in exercise of any power of or the performance of any function by the State or any of its instrumentalities under any law for the time being in force;
2. (b)
  under policy shall be construed as a reference to provision or issuance of such subsidy, benefit, service, certificate, licence or permit under any policy or instruction issued by the Central Government or a State Government in exercise of its executive power; and
3. (c)
  using public funds shall be construed as a reference to provision or issuance of such subsidy, benefit, service, certificate, licence or permit by incurring expenditure on the same from, or with accrual of receipts to, —
  1. (i)
    in case of the Central Government or a State Government, the Consolidated Fund of India or the Consolidated Fund of the State or the public account of India or the public account of the State; or
  2. (ii)
    in case of any local or other authority within the territory of India or under the control of the Government of India or of any State, the fund or funds of such authority.

Source: Gazette of India, G.S.R. 846(E), 13 Nov 2025 (MeitY copy)

Act sections and tools that apply

DPDP Act 2023, s. 7: Certain legitimate usesSecond Schedule: standards for State processing and research

Source: Gazette of India, G.S.R. 846(E), 13 Nov 2025 (MeitY copy) · Change log