Data PrivacyAre ‘Record of Processing Activities’ Mandatory for Indian Companies?

INTRODUCTION

As data privacy regulations tighten across the globe, businesses are under growing pressure to keep clear, organized records of how they handle personal data. One such tool widely used internationally is the ‘Record of Processing Activities’, commonly referred to as ROPA.

Mandated under the European Union’s (hereinafter referred to as “EU”) General Data Protection Regulation (hereinafter referred to as “GDPR”), ROPAs serve as an internal documentation that outlines all data processing operations carried out by an organization.  In India, where the Digital Personal Data Protection Act (hereinafter referred to as “DPDPA”), 2023 has been introduced and expected to be implemented soon, organizations have been unsure about ROPA’s mandate.

This article is an attempt to unfold such ambiguities by understanding the meaning of ROPA, the applicable laws for maintenance of  records, and  its mandate for Indian businesses, especially data-heavy sectors like fintech, Information Technology (hereinafter referred to as “IT”), and e-commerce.

WHAT IS A RECORD OF PROCESSING ACTIVITIES?

A ROPA is an internal and detailed document that outlines how an organization collects, uses, stores, shares, and disposes of personal data. It serves to track each step of data processing, including the types of data handled, the purposes of processing, the recipients of the data, the retention periods, and the security measures implemented.

Under the GDPR, ROPAs are mandatory for most organizations, especially those processing large volumes or sensitive personal data. It acts as a complete record of all personal data processing activities carried out by a company.

As per GDPR, a ROPA must contain some important information and details about company’s data processing activities by including:

1. Contact Details: It includes the name and contact information of the Data Controller and, if appointed, the Data Protection Officer (hereinafter referred to as “DPO”). This helps authorities and data subjects know who is responsible for data handling.
2. Purpose of Processing: Describes why the personal data is being collected and how it will be used. Clear purposes ensure transparency and compliance with data protection principles.
3. Categories of Data Subjects: Lists the groups of individuals whose data is being processed, like customers or employees. It helps map data processing to specific stakeholder groups.
4. Categories of Personal Data: Details the types of personal data processed, such as names, emails, or financial info. This allows company to assess data sensitivity and related risks.
5. Legal basis of processing: The legal reason or basis for processing personal data like legal obligation, consent or public interest.
6. Data Transfers: Mentions whether data is transferred internationally and under what legal safeguards. This is crucial for cross-border data compliance.
7. Retention Periods: Specifies how long each category of data is stored before deletion. Proper retention schedules reduce risk and support legal compliance.
8. Security Measures: Describes technical and organizational steps taken to protect data e.g., encryption, access control. Strong measures help prevent data breaches and build trust.

LEGAL REQUIREMENT FOR MAINTAINING ROPAs IN INDIA

Even though GDPR is specific to EU, but since its implementation, the GDPR has acted as a guiding light with regards to every aspect of data protection. Article 30(5) of the GDPR states that maintaining a ROPA is mandatory. It applies to any company doing business in the EU as well as any companies outside the EU that sell products or services to clients or companies in the EU.  This compliance has to be maintained by all companies having more than 250 employees and who handles the sensitive personal data of people.

Subsequently, since GDPR applies outside of the EU, even in a limited manner, it does apply to Indian companies that do business with European users or companies which involves in business of goods and service and data transfer between the countries. Also, those who export the goods and services to EU are covered under it. If there happens a non-compliance with GDPR, the company can attract penalties and fines of up to €10 million or 2% of annual global turnover, whichever is higher.

In India, data protection laws do not explicitly mandate the maintenance of ROPAs. However, doing so aligns with its accountability and transparency principles and is increasingly recognized as a best practice. Hence, Indian companies which are not operating or are in any trade of goods and services with EU are not mandated to maintain a ROPA as per Indian data protection laws.

Nonetheless, ROPA offers an organized method for recording data processing operations, which is essential for meeting the accountability and transparency requirements of the DPDPA. Furthermore, thorough records serve as a basis for audits and regulatory inspections and aid in identifying and evaluating the risks connected to data processing operations, enabling improved data protection impact assessments as required by the DPDPA.

BENEFITS OF MAINTAINING ROPAs

Maintaining ROPA offers several practical and legal benefits, especially for companies aiming to stay compliant and build trust. Some of the key benefits are:

1. Supports Legal Compliance: ROPAs help demonstrate that your company is complying with data protection laws like the GDPR and DPDPA. They serve as conclusive evidence during audits or investigations and enhances transparency.
2. Strengthens Data Governance: Maintaining ROPAs gives you a clearer understanding of where data is stored, who accesses it, and how it is used. This helps identify risks, close gaps, and improve internal data management.
3. Speeds up Response to Data Subject Requests: When individuals ask to access, correct, or delete their data, ROPAs help your team quickly locate the relevant information and respond within legal timeframes.
4. Aids in Risk Management: ROPAs make it easier to spot unnecessary or risky processing activities. You can proactively adjust your practices before they become a legal or reputational issue.
5. Facilitates Cross-Border Data Transfers: If your company deals with international clients or vendors, ROPAs help assess and document compliance with cross-border data transfer rules especially under GDPR.
6. Builds Client and Partner Confidence: Many clients, especially those abroad, require their vendors to maintain ROPAs as part of due diligence. Keeping them updated can improve business relationships and competitiveness.

FUTURE OUTLOOK: WILL INDIA MANDATE ROPA?

Although India’s data protection law doesn’t currently require companies to maintain ROPA, things are likely to change. As the new data protection framework rolls out, companies handling large volumes of personal or sensitive data like tech firms, banks, and online platforms may be asked to keep more detailed records of how they use personal information.

Globally, ROPAs are already considered a best practice, and India is expected to follow that trend, especially as it strengthens its digital economy and enters data agreements with other countries.

Also, as the Government begins enforcing the law more actively, maintaining records like a ROPA could soon become a standard compliance requirement. Even if not officially required yet, Indian companies that voluntarily maintain ROPAs will be better prepared for audits, legal scrutiny, and global business opportunities. It is a smart, forward-looking move that supports strong data governance.

AMLEGALS REMARKS

While Indian law doesn’t yet make it mandatory to maintain ROPAs, but ROPA is fast becoming a global best practice. For Indian companies, especially those in fintech, IT, or e-commerce, voluntarily maintaining ROPAs shows that they take data privacy seriously. It not only strengthens internal governance but also builds trust with regulators, clients, and international partners.

As the country deepens its digital economy and aligns with global privacy norms, we can expect tighter documentation standards ahead. Proactively adopting ROPAs now gives businesses a strong foundation for compliance, smoother audits, and better risk management. Companies that stay ahead of regulatory trends will lead the way in privacy-first business. Adopting it early is a smart, future-ready move for any business that handles personal data.

For any queries or feedback, feel free to reach out to mridusha.guha@amlegals.com or rohit.lalwani@amlegals.com