New compliance requirements are forcing enterprises, city authorities, and surveillance operators to rethink how facial recognition is deployed across India.
New Delhi:
The implementation of India’s Digital Personal Data Protection (DPDP) Act, 2023, along with the upcoming DPDP Rules, 2025, is significantly altering how face recognition–enabled CCTV systems can be used across public and private spaces. Organizations deploying surveillance technologies are now required to introduce stricter data governance, consent mechanisms, and privacy safeguards to remain compliant under the new law.
Industry experts say the DPDP framework marks a shift from unrestricted surveillance practices to regulated, purpose-driven data processing, especially in systems that capture biometric identifiers such as facial images.
Facial Recognition Classified as Sensitive Personal Data
Under the DPDP Act, facial data collected through CCTV cameras is classified as personal data, and in many cases sensitive personal data, due to its biometric nature. This classification triggers higher compliance obligations for entities deploying face recognition systems.
According to legal analysts, any organization collecting facial data must now clearly define:
- The purpose of data collection
- The duration of data storage
- The lawful basis for processing
Failure to meet these requirements could attract regulatory scrutiny and penalties once enforcement mechanisms become active.
Consent and Transparency Become Mandatory
One of the most significant changes introduced by the DPDP framework is the emphasis on explicit consent and transparency.
Entities using face recognition in CCTV deployments are expected to:
- Display clear notices informing individuals of facial data collection
- Specify whether facial recognition is active or disabled
- Provide information on how long facial data will be retained
In public environments such as airports, government buildings, retail stores, and corporate campuses, organizations are increasingly adopting opt-in or notice-based consent models to align with regulatory expectations.
Data Retention and Purpose Limitation Under Scrutiny
The DPDP Act restricts organizations from retaining personal data beyond the stated purpose. For face recognition CCTV systems, this means:
- Facial templates cannot be stored indefinitely
- Data must be automatically deleted after the defined retention period
- Continuous tracking without a legitimate purpose may be deemed non-compliant
Security consultants note that many legacy CCTV deployments currently store facial data without retention controls, placing them at compliance risk.
On-Premise Processing Gains Momentum
To reduce exposure and ensure regulatory compliance, several enterprises are shifting towards on-premise and edge-based AI processing models. These systems process facial recognition data locally rather than transmitting it to external cloud servers.
Technology providers report growing demand for:
- Edge AI-enabled cameras
- Localized facial recognition engines
- Encrypted, access-controlled data storage
This approach limits data transfer risks and aligns with the DPDP Act’s emphasis on data minimization.
Impact on Smart Cities and Law Enforcement
Smart city projects and law enforcement agencies using face recognition-enabled CCTV systems are also reassessing their operational frameworks. While the DPDP Act provides certain exemptions for lawful government functions, experts caution that blanket surveillance without safeguards may still face legal challenges.
Several municipalities are now updating standard operating procedures to:
- Introduce audit and logging mechanisms
- Define lawful use cases
- Restrict access to facial databases
Compliance Expected to Become an Enforcement Priority
With the DPDP Rules expected to clarify enforcement procedures, organizations are being advised to conduct compliance audits of existing CCTV infrastructure. Legal advisors warn that retrofitting compliance controls later could be more costly than proactive alignment.
Industry observers believe enforcement actions in sectors such as retail, transportation, and large campuses could set early precedents under the new data protection regime.
Industry Outlook
As India’s data protection ecosystem matures, facial recognition technologies are likely to face greater regulatory oversight, pushing organizations toward privacy-by-design surveillance models.
Experts predict that vendors offering DPDP-aligned CCTV and face recognition solutions will gain a competitive advantage as enterprises prioritize compliance alongside security objectives.
