Who is a Data Fiduciary? Responsibilities of Schools under DPDPA

Responsibilities of Schools under the Digital Personal Data Protection Act (DPDPA)

In today’s digital era, data is one of the most valuable assets. Every click, form submission, or digital interaction generates personal information that must be collected, processed, and protected responsibly. This has led to the rise of a crucial concept in data privacy law: the Data Fiduciary.

A Data Fiduciary is any organization, institution, or entity that decides why and how personal data is collected and processed. Simply put, the Data Fiduciary is responsible for determining the purpose of data collection and ensuring its safe handling. With the Digital Personal Data Protection Act (DPDPA) 2023, India has set clear rules to ensure that all entities handling personal data follow strict compliance measures.

Among the key Data Fiduciaries are schools and educational institutions. Schools handle a large volume of sensitive data daily—student names, contact information, academic records, health details, financial records, and even online activity. This makes it essential for schools to adopt responsible data protection practices.
 

Why Schools Are Classified as Data Fiduciaries

Schools are more than just places of learning, they are custodians of sensitive student information. From admission forms to attendance registers, from exam results to medical histories, schools process highly personal and sensitive data.

The DPDPA identifies schools as Data Fiduciaries because:

1. They decide why data is collected (e.g., for admissions, examinations, scholarships).
    
2. They determine how data is processed (e.g., digital storage, report cards, online portals).
    
3. They control the lifecycle of student data, including usage, storage, sharing, and deletion.
    

This places a legal and ethical responsibility on schools to handle student data with utmost care.
 

Key Responsibilities of Schools under DPDPA

The Digital Personal Data Protection Act lays down clear duties for schools functioning as Data Fiduciaries. These include:
 

1. Obtaining Clear and Informed Consent

Before collecting any student’s personal data, schools must get explicit consent from parents or guardians (for minors).
 

Consent must be free, informed, specific, and unambiguous.
 

Schools cannot use student data for purposes beyond what was agreed upon.
 

Example: If a school collects student email IDs for exam updates, the same data cannot be used for marketing without consent.

2. Limiting Data Collection to Specific Purposes

Schools must only collect data that is necessary and relevant.
 

Collecting excess or irrelevant information goes against data minimization principles.
 

Example: Asking for family income for scholarship eligibility is valid, but collecting unnecessary personal details about siblings may not be.

3. Ensuring Secure Data Storage and Access

Schools must adopt data protection technologies like encryption, password-protected databases, and secure servers.
 

Access to student records must be restricted to authorized staff only.
 

This not only prevents cyberattacks but also protects against internal misuse of data.

4. Deleting Data When Purpose is Fulfilled

The law requires schools to erase personal data once the purpose for which it was collected is complete.
 

Retaining old student data without reason creates unnecessary risks.
 

Example: Once a student graduates, the school should delete unnecessary personal details unless required by law (e.g., marksheets, certificates).

5. Logging Breaches and Grievance Redressal

Schools must log and report data breaches such as leaks, hacks, or unauthorized access.
 

They must establish a grievance redressal mechanism for students and parents to raise complaints.
 

Appointing a Data Protection Officer (DPO) ensures accountability.

6. Special Protection for Children’s Data

Since student data belongs to minors, it is classified as sensitive personal data.
 

Schools cannot use children’s data for profiling, targeted advertising, or commercial gain.
 

Any misuse may attract penalties under DPDPA.
 

Benefits of Compliance for Schools

By complying with DPDPA, schools not only avoid penalties but also gain multiple advantages:

• Trust & Reputation: Parents feel confident sending children to a school that respects privacy.
   
• Legal Protection: Prevents lawsuits and government penalties.
   
• Cyber Safety: Reduces chances of student data leaks or identity theft.
   
• Transparency: Builds a culture of accountability within the institution.

Consequences of Non-Compliance

The DPDPA has introduced strict penalties for entities that fail to comply with its provisions. For schools, this could mean:

• Hefty fines for data breaches or misuse.
   
• Loss of reputation among parents and stakeholders.
   
• Legal actions from affected individuals.
   
• Government scrutiny and audits.
   

In the long run, non-compliance can damage both the institution’s credibility and financial stability.

Steps Schools Can Take to Stay Compliant

To ensure full compliance with DPDPA, schools should implement the following:

1. Create a Data Privacy Policy that is simple, transparent, and accessible to parents and students.
    
2. Train teachers and staff on responsible handling of personal data.
    
3. Use secure digital platforms for storing academic and administrative records.
    
4. Regularly audit data collection practices to identify risks.
    
5. Appoint a Data Protection Officer (DPO) to oversee compliance and handle grievances.
    

In the digital world, schools play a dual role: nurturing young minds and protecting their personal data. With the enforcement of the Digital Personal Data Protection Act (DPDPA), schools are now legally recognized as Data Fiduciaries with the responsibility to collect, process, and safeguard data ethically and securely.

By obtaining clear consent, limiting data use, ensuring safe storage, deleting data when no longer needed, and addressing grievances transparently, schools can set a benchmark for privacy compliance in education.

Ultimately, protecting student privacy and data security is not just about legal obligations—it’s about building trust, safety, and accountability in the learning environment. Schools that prioritize data protection today will create a safer, smarter, and more transparent future for tomorrow’s generation.

Ensure your school meets every requirement of the Digital Personal Data Protection Act. Get expert guidance now!