AI and Your Rights in India: DPDP Act, Consumer Protection, and What You Can Do When AI Affects You

Your DPDP Act rights

The DPDP Act 2023 gives Indian individuals four categories of rights over their personal data. Right of access: ask any organisation what personal data it holds about you, for what purposes, and with whom it has been shared — including data used in AI systems. Right to correction and erasure: ask organisations to correct inaccurate or incomplete data, and erase data no longer necessary for the purpose for which it was collected. Inaccurate data in AI systems can produce inaccurate assessments — correcting it is an important first step. Right to grievance redress: have grievances addressed by organisations, and escalate to the Data Protection Board when established. Right to nominate: designate someone to exercise your DPDP Act rights in the event of death or incapacity.

Consent and AI

Organisations must obtain your specific, informed consent before using your personal data in AI systems for purposes you would not reasonably expect. Consent must be given through a clear affirmative action — pre-ticked boxes or buried terms do not constitute valid consent. You have the right to withdraw consent at any time. If an organisation is using your personal data in an AI system for a purpose you did not agree to, you can withdraw consent, file a grievance with the organisation, and when the Data Protection Board is operational, escalate the complaint there.

Financial services AI

The Reserve Bank of India requires banks and NBFCs to give specific reasons for credit rejections. If an AI-driven credit decision has rejected your application, the lender must provide specific reasons. If inadequate, file a complaint with the Banking Ombudsman at bankingombudsman.rbi.org.in. For securities-related AI decisions, file with SEBI at scores.gov.in.

Consumer protection

The Consumer Protection Act 2019 provides a framework for challenging unfair trade practices and defective products including AI-based consumer products and services. Consumer forums at the district, state, and national levels hear such complaints. The National Consumer Disputes Redressal Commission (NCDRC) handles larger claims. Complaints are generally free or low-cost and accessible without legal representation.