Impact of DPDP Rules on Educational Institutions (Part II of a 3 Part Series)

legislation governing personal data protection. Enacted to regulate how personal data is collected, stored, and processed, the DPDP Act introduces key principles of lawfulness, transparency, and accountability in data handling. The Digital Personal Data Protection (DPDP) Rules, 2025, introduced by the Ministry of Electronics and Information Technology (MeitY), provide a structured framework for implementing the DPDP Act, and carve out certain relaxations for educational institutions that collect and process personal data. The Rules are yet to be implemented and are open for public consultation at this time.

In this edition we delve into how the DPDP Act read with the Rules apply to educational institutions, and how educational institutions may prepare to comply with the new DPDP Act.

Recapping - Summary of the DPDP Rules

The DPDP Rules regulate how Data Fiduciaries collect, store, and process personal data. These rules emphasize:

• Data Minimization: Institutions must collect only the necessary personal data for specific, legitimate purposes.
• Purpose Limitation: Personal data should only be used for the stated purpose and must not be repurposed without authorization.
• Data Security: Institutions must implement technical and organizational safeguards to prevent unauthorized access, modification, or misuse of data.
• Rights of Data Principals: Individuals, including students and parents, have the right to access, correct, or request the deletion of their personal data.

Applicability of DPDP Act and Rules to Educational Institutions

The DPDP Act applies to all entities processing personal data digitally, including government bodies, private organizations, and educational institutions. Since educational institutions collect data pertaining to students, faculty, and parents for their routine administration, operations and impact measurement, the DPDP Act would apply to educational institutions that collect and process personal data.

Part B of the Fourth Schedule of the DPDP Rules defines “educational institutions” as an institution of learning that imparts education, including vocational education. This broad definition covers schools, colleges, universities, and vocational training centers, whether they are run as for-profit or non-for-profit entities.

Typically, as Data Fiduciaries, educational institutions must ensure the lawful, fair, and secure handling of personal data in activities such as admissions, academic tracking, and administrative management. As part of their regular compliance obligations, educational institutions must:

• Obtain explicit and verifiable parental consent for processing children's personal data.
• Not carry out behavioural monitoring and tracking of children through data collection except for educational or safety-related purposes.
• Draft a robust data privacy, data protection, data use and data retention policy along with well-established processes to implement these policies in letter and spirit.
• Establish robust data breach response mechanisms to contain and mitigate security incidents.
• Train staff members on data protection best practices and compliance requirements under the DPDP Rules.
• Appoint a Data Protection Officer (DPO) to oversee compliance and governance.

Certain relaxations have been granted to educational institutions under the DPDP Rules to balance compliance requirements with practical operational needs. These exemptions include:

• Processing Without Consent for Educational Purposes: Educational Institutions can collect and process students' data without verifiable parental consent if necessary for academic purposes, safety, or institutional operations.
• Permissions for Limited Behavioural Monitoring: The DPDP Rules outline strict limitations on tracking and behavioural monitoring within educational institutions to protect student privacy. Such monitoring is permissible only for two key reasons: first, to support the educational activities of the institution, and second, to ensure the safety of children enrolled. This means that data collection related to student performance, academic progress, and engagement is allowed as part of the institution's educational objectives. Similarly, monitoring aimed at safeguarding students—such as preventing bullying or ensuring a secure environment—is also permitted. However, any processing of data or behavioural tracking for purposes outside of these educational or safety-related reasons (such as advertisements is prohibited).

These exemptions acknowledge the unique role of educational institutions and allow them to function efficiently while maintaining privacy safeguards. However, Data Fiduciaries are not permitted to carry out any data processing activities that have a detrimental effect on the well-being of a child.

At Pacta, we recognize that the DPDP Rules introduce both challenges and opportunities for educational institutions. The increasing emphasis on data protection aligns with global privacy standards, ensuring student privacy while maintaining academic integrity. However, institutions must take proactive steps to implement data governance policies, enhance security measures, and train staff on compliance.

By embracing these changes, educational institutions can build trust with students, parents, and regulators, ensuring a safe and compliant learning environment.

If your institution needs guidance on implementing DPDP compliance measures, reach out to Pacta for expert solutions and tailored strategies.

Please await our next edition on the impact of DPDP Rules on Research-Based Institutions and Health Data. Also look out for Pacta’s events around data privacy compliances tailored for social sector, and a detailed Data Protection primer for NGOs.