Encryption

In the context of the Digital Personal Data Protection Act, 2023 (DPDP Act), encryption is a security measure used to protect personal data from unauthorized access during storage, transmission, or processing. It converts readable information (plaintext) into an unreadable format (ciphertext) using cryptographic algorithms and keys. Only users or systems possessing the appropriate decryption key can restore the data to its original form. Encryption helps preserve the confidentiality of personal data throughout its lifecycle.

Organizations process personal data across websites, mobile applications, cloud platforms, databases, APIs, employee devices, and backup systems. Encryption helps reduce the risk of unauthorized disclosure if personal data is intercepted, accessed without authorization, or exposed through lost devices or compromised systems. It is commonly implemented alongside other security measures such as access controls, identity and access management, key management, logging, and continuous monitoring to strengthen the protection of personal data.

The DPDP Act does not mandate encryption as a specific technical requirement. Instead, it requires Data Fiduciaries to implement reasonable security safeguards to protect personal data from Personal Data Breaches. Depending on the sensitivity of the personal data processed and the risks involved, encryption may form an important component of those safeguards. It also aligns with widely accepted security standards and good practices for protecting sensitive information and reducing the impact of security incidents.

In practice, gaps emerge when:

• Personal data is stored or transmitted without encryption despite the associated risks.
• Encryption keys are inadequately protected or managed.
• Different business systems apply inconsistent encryption standards.
• Backup copies containing personal data remain unencrypted.
• Encryption is implemented but not regularly reviewed as systems and risks evolve.

Organizations strengthen data protection by implementing encryption across storage and communication channels, adopting secure key management practices, periodically reviewing cryptographic controls, and integrating encryption into broader privacy and security governance. Within Privy, capabilities such as automated data discovery, data classification, data mapping, governance workflows, and audit-ready reporting help organizations identify where personal data resides and flows, enabling appropriate security measures—including encryption—to be applied based on risk.