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.
Back to the glossary01 · 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.
- GuideDPDP for SaaS and IT service providersProcessor contracts, client reviews and shared duties.
- GuideControllers, processors & DPOsWho decides, who processes, and when a DPO is required.
- GuideData fiduciary, processor or consent manager?The three roles the Act names, and which one you are.
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.
Related guides
- Data fiduciaryThe person or organisation that decides, alone or with others, why and how personal data is processed, and so answers for it under India's DPDP Act.
- Data controllerUnder the GDPR, the person or body that, alone or with others, decides the purposes and means of processing personal data, and answers for that processing.
- GDPRThe European Union's regulation on processing personal data, applied since May 2018, which also reaches firms outside the EU that target or monitor people in it.
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