Glossary · Privacy and data protection

Two laws use the same word, and both mean a party acting on another's instructions.

An organisation that processes personal data on behalf of another, the fiduciary under India's DPDP Act or the controller under the GDPR, without choosing the purpose.

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01 · In plain words

In plain words

An organisation that processes personal data on behalf of another, the fiduciary under India's DPDP Act or the controller under the GDPR, without choosing the purpose.

A data processor does the work but not the deciding. A payroll bureau, a cloud host or a support outsourcer handles personal data because a client asked it to. Both India's DPDP Act and the EU General Data Protection Regulation (GDPR) use the word, but they load it very differently.

02 · Why it matters

Why it matters

Who cares about this, and what depends on it.

Under the DPDP Act, the processor carries almost no direct statutory duties. The data fiduciary stays answerable for what its processor does, may only use one under a valid contract, must make it keep reasonable security safeguards and must have it erase data when the purpose ends. The Rules add that the fiduciary should keep logs, including the processor's, for at least a year. Under the GDPR the processor has its own duties: Article 28 lists what the contract must contain, and processors must keep records, secure the data, use sub-processors only with authorisation and tell the controller about breaches without undue delay. An Indian vendor serving both markets needs both views.

03 · Where you meet it

Where you will meet it

The documents, meetings and reports where it appears.

A data processing agreement
The contract that fixes instructions, security, sub-processors, breach notice and return or deletion of data.
A customer security review
Questionnaires asking which sub-processors you use and how you would support the client's own duties.
The sub-processor list
A published list a GDPR controller can object to, and a DPDP fiduciary will ask about.
A SOC 2 or ISO 27001 scope
Assurance reports a processor shares to show its safeguards, which the client relies on.

04 · An example

A worked example

An illustration, not a real client.

Illustrative: a Pune call centre serving an Indian lender and a German retailer

A call-centre company handles calls for an Indian lender and for a German online retailer. For the lender, it is a processor under the DPDP Act: the lender's contract must bind it to safeguards and erasure, and the lender answers to the Board. For the retailer, it is a processor under the GDPR and must meet Article 28 terms. Section 17 of the DPDP Act also narrows how the Act applies when an Indian company processes data of people outside India under a foreign contract, leaving the security duty in place.

05 · Easy to mix up

Easy to mix up with

Neighbouring terms that mean something different.

Sub-processor
A vendor your processor hires. Under the GDPR it needs the controller's authorisation; under the DPDP Act the fiduciary's contract should govern it.
Data fiduciary or controller
The party that decides why. A processor that starts using data for its own ends becomes a fiduciary or controller for that use.

06 · What to do

What to do with it

Practical steps, and the guides that go deeper.

  • Write down, client by client, whose instructions you follow and whether you ever use the data for yourself.
  • Keep one processing agreement that meets GDPR Article 28 and the DPDP contract and erasure needs.
  • Maintain a current sub-processor list and a way to tell clients when it changes.
  • Agree breach notice timings with each client so they can meet their own clocks.

Sources: Digital Personal Data Protection Act, 2023, sections 2, 8 and 17; Digital Personal Data Protection Rules, 2025, rules 6 and 8; Regulation (EU) 2016/679, Articles 4, 28, 30, 32 and 33. Not legal advice.

Questions about Data processor

Can the Data Protection Board fine a processor directly?

The Act's duties sit mainly with the fiduciary.

The Act makes the fiduciary responsible for processing done on its behalf, and the penalty Schedule is framed around fiduciaries. A processor's exposure in India is mainly contractual and under other laws. Counsel should confirm how this applies to your contracts.

Is a cloud provider always a processor?

Usually for customer data, not for its own account data.

A cloud host is normally a processor for the data customers store with it. It is a fiduciary or controller for its own billing and account records, because it decides why it keeps those.

Want this applied to your own systems?

Our team can walk through where this term touches your scope, your contracts and your evidence.