How DLP Software Helps Businesses Stay Compliant with Indian Data Protection Laws

Handling data and information is a significant responsibility, especially with the obligation to safeguard and protect sensitive information. India has recognized this necessity and subsequently imposed a legal framework for enforcement, at least in respect to personal data processing. Compliance with such legislation is not straightforward; as a result, DLP solutions have been useful enablers in addressing complexity.

Understanding the Data Protection Landscape in India

The data protection landscape in India has undergone a significant shift. There were guidelines under the Information Technology Act, 2000, and the rules that preceded it. Nevertheless, the DPDP Act, 2023, is the most seminal and comprehensive legislation to date for protecting personal data in a contemporary manner.

Generally, the DPDP Act outlines specific principles and obligations that are binding on individuals handling confidential data. These are:

• Consent: Processing of personal data should, in general, be preceded by the free consent of the individual.
• Purpose Limitation: Personal data shall be processed solely for the purpose for which it was collected.
• Data Minimization: Personal data not necessary for the intended purpose shall be collected and processed only when absolutely necessary.
• Accuracy: Data fiduciaries will ensure that they make reasonable efforts to test the personal data to be processed by them to verify its accuracy, completeness, and non-misleading nature.
• Retention: Personal data is retained only for as long as it is necessary for the purpose for which it is being processed.
• Security: Data fiduciaries will implement reasonable security measures to prevent data breaches.
• Transparency and Accountability: These organizations will be transparent in their data processing and accountable for non-compliance.

Non-compliance with these regulations may result in fines, criminal charges, and financial harm. Companies with business in India and those that process the personal data of the citizens of India should pay careful attention to the enforcement of these regulations.

Role of DLP Software in Compliance

The software categorization is designed to keep sensitive data from leaving an organization’s domain of control, hence detecting it. The status of data can be in trouble, in motion, or at rest; thus, data loss prevention software seeks to recognize, track, and protect against it. Utilization of the software gives the company a gigantic boost towards Indian data protection regulations in many ways:

1. Data Discovery and Classification for Regulatory Mapping

Data discovery is the first step in complying with legislation: Identify the personal data your organization may store, understand its location, and determine the applicable sensitivity level according to the DPDP Act. What DLP products do is basically locate data; they scan numerous data repositories, which may include endpoints, networks, and cloud environments, to identify personal data.

Furthermore, DLP solutions have strong data classification capabilities. They classify data using rules-based methods, content analysis (utilizing keywords and patterns, such as Aadhaar numbers or PAN card structures), or machine learning methods. This allows Corporations to automatically identify and mark data coming within the purview of the expression’ personal data’ or ‘sensitive personal data’ under the dynamic interpretation of the legislation. After being informed of where the personal data is located and how it is classified, an organization can draft a map of its data landscape consistent with the DPDP Act.

2. Implementing Usage and Transfer Policy

DPDP Act focuses on the purpose limitation and the secure processing obligation. DLP software allows a business to specify and enforce the application of policy on the usage and transfer of personal data.

Usage Control – DLP can track user activities and block unauthorized use of copying, printing, or alteration of sensitive information that violates internal guidelines or norms under the DLP Act. For instance, it can enforce policies prohibiting copying of the customer database to a personal USB drive and distribution of employee financial information through unsecured communication channels.

Any violations of personal data processed outside of the law prompt DLP to enforce these policies and take remedial action against those with a DLP violation, unauthorized disclosure, or unauthorized processing.

3. Anti-Breach of Data and Unauthorized Access

The DPDP Act mandates the application of reasonable security measures against a breach of data. DLP stops data loss incidents from happening in this regard.

• Endpoint Protection: A DLP agent installed on an employee’s machine can monitor activity for attempted data leakage, preventing attempts such as copying confidential files to a removable media drive or unauthorized uploads to the cloud.
• Network Monitoring: DLP can inspect network traffic (email, web, file sharing) to identify and block the transmission of personal data in a manner opposite to its policies.
• Cloud Security: Any business utilizing cloud services can leverage Cloud DLP to track data stored and shared in the cloud as well as block accidental and deliberate data exfiltration.

By blocking data exfiltration from the organization in an unauthorized fashion, DLP limits the possibility of data breaches, thus supporting the organization’s ability to meet the security requirements imposed under the terms of the DPDP and defending against potential penalties and losses.

4. Support in Incident Response and Event Reporting

Despite having a complete prevention software, data security breaches will still occur. In these cases, DLP software can assist incident response by providing alerts and logs of policy breach events that could have resulted in potential data loss. This enables security teams to alert, investigate promptly, and remediate incidents involving personal data.

In case of a breach, a duty to inform the authorities and parties affected may be entailed by the DPDP Act; DLP products, with their level of audit trails and logging, will be important in realizing the dimensions and scope of the breach to ensure proper and timely reporting in terms of requirements by law.

5. Proving Due Diligence and Accountability

The use of DLP software  that an affirmative effort, rather than a reactive measure, is being taken to safeguard data and comply with the requirements of the DPDP Act. When controls are implemented to prevent data loss and review data treatment practices using technical controls, the organization will have demonstrated that it has taken reasonable diligence to secure personal data.

The reporting and auditing capabilities offered by DLP solutions ensure that organizations have evidence of the controls in place, as well as documentation of any incidents that may have occurred, thereby holding the entity accountable under the law.

Key Functions of DLP Software for DPDP Compliance

So that the software can support the Indian data protection law suitably, DLP software must incorporate the following functions:

• Granular Data Classification: The Capacity to identify and detect personal data based on different criteria applicable under the DPDP Act.
• Policy Enforcement: Definition of rules related to the usage, transmission, and storage of personal data, and implementing those rules.
• Contextual Awareness: Knowledge of user, device, application, and destination of data in making policy decisions.
• Real-Time Monitoring and Blocking Violations: A Feature to monitor data movement and blocking of policy breaches in real-time.
• Coverage is Comprehensive for Endpoints, Networks, and Clouds: Coverage in all contexts for the data coverage continuum.
• Incident Reporting and Management: Divert, investigate, and report incidents related to data.
• Auditing and Logging: Logs of all activity involving data movement and enforcement action carried out against specific policies.

Conclusion

If you are a business working to comply with the new landscape of Indian data protection laws, especially the Digital Personal Data Protection Act, 2023, Data Loss Prevention (DLP) software is a suite of powerful tools to help companies comply with and demonstrate the appropriate use of information. It can assist with data discovery and classification, establish appropriate data usage and transfer policies, prevent data breaches from occurring, facilitate incident response, and demonstrate accountability. DLP is a crucial tool that should be included as a part of and within a comprehensive data protection plan to comply with Indian legislation and protect the personal data of individuals. As you make the important decision to invest in DLP and implement the processes, the discussion on whether you are investing in security becomes irrelevant compared to achieving legal compliance, and the trust in India’s evolving digitization journey.