---
title: "Rule 5: Processing of personal data for provision or issue of subsidy, benefit, service, certificate, licence or permit by State and its instrumentalities"
url: https://dpdp.myndsolution.com/wiki/rules/rule-5-processing-of-personal-data-for-provision-or-issue-of/
description: "Rule 5 of the Digital Personal Data Protection Rules, 2025 (Processing of personal data for provision or issue of subsidy, benefit, service, certificate…"
kind: rule
updated: 2026-09-09
official_source: https://egazette.gov.in/WriteReadData/2025/267650.pdf
text_type: official-text-plus-interpretation
publisher: MYND Integrated Solutions
license: Official Government of India texts are reproduced verbatim (public domain / open government data). Interpretation is CC BY 4.0, MYND Integrated Solutions.
disclaimer: Not legal advice. Official text prevails over any interpretation.
html_version: https://dpdp.myndsolution.com/wiki/rules/rule-5-processing-of-personal-data-for-provision-or-issue-of/
---
# Rule 5: Processing of personal data for provision or issue of subsidy, benefit, service, certificate, licence or permit by State and its instrumentalities

*The Digital Personal Data Protection Rules, 2025, G.S.R. 846(E) dated 13 November 2025. Comes into force on 13 May 2027.*

## Official text

- **(1)** Processing the personal data of a Data Principal under this rule shall be done following the standards specified in Second Schedule.

- **(2)** In this rule and the Second Schedule, the reference to any subsidy, benefit, service, certificate, licence or permit that is provided or issued—
  - **(a)** under law shall be construed as a reference to provision or issuance of such subsidy, benefit, service, certificate, licence or permit in exercise of any power of or the performance of any function by the State or any of its instrumentalities under any law for the time being in force;
  - **(b)** under policy shall be construed as a reference to provision or issuance of such subsidy, benefit, service, certificate, licence or permit under any policy or instruction issued by the Central Government or a State Government in exercise of its executive power; and
  - **(c)** using public funds shall be construed as a reference to provision or issuance of such subsidy, benefit, service, certificate, licence or permit by incurring expenditure on the same from, or with accrual of receipts to, —
    - **(i)** in case of the Central Government or a State Government, the Consolidated Fund of India or the Consolidated Fund of the State or the public account of India or the public account of the State; or
    - **(ii)** in case of any local or other authority within the territory of India or under the control of the Government of India or of any State, the fund or funds of such authority.


## Made under

- [s. 7 Certain legitimate uses](https://dpdp.myndsolution.com/wiki/act/section-7-certain-legitimate-uses/)

## Interpretation in plain English (not legal advice)

> This is a plain-English interpretation of the official text, prepared by the DPDP Wiki editorial team. It is not the law and not legal advice, and it may be incomplete or wrong. Always rely on the official text of the Act, the Rules and the notifications, and take advice from a qualified professional for your situation.

Rule 5 sets the rules for how the government and its agencies process the personal data of a Data Principal (the individual to whom the data relates) when providing subsidies, benefits, services, certificates, licences, or permits. Any processing of personal data for these purposes must follow the specific standards laid out in the Second Schedule of the rules.\n\nThe rule defines exactly what it means when these government benefits or documents are issued under law, under policy, or using public funds. If something is issued under law, it means the State or its agencies are acting under a current legal power or function. If it is issued under policy, it means it is based on an executive policy or instruction from the Central Government or a State Government.\n\nFinally, the rule explains what using public funds means. For the Central Government or a State Government, this involves spending from or receiving money into the Consolidated Fund or public accounts of India or the State. For local or other government-controlled authorities, it refers to the specific funds belonging to those authorities.

### Key points

- Processing a Data Principal's personal data for government subsidies, benefits, or permits must follow the standards in the Second Schedule. [(1)]
- Providing a benefit under law means the State or its agencies are exercising a power or function under a current law. [(2)(a)]
- Providing a benefit under policy means it is issued under an executive policy or instruction from the Central Government or a State Government. [(2)(b)]
- Providing a benefit using public funds means the money comes from or goes to the Consolidated Fund or public accounts of the Central or State Government. [(2)(c)(i)]
- For local authorities, using public funds refers to the specific funds of that authority. [(2)(c)(ii)]

### Common misreadings

- Using public funds does not just mean Central or State Government funds; it also includes the specific funds of local or other government-controlled authorities.
- This rule does not contain the actual processing standards itself, but strictly requires following the standards specified in the Second Schedule.

*Interpretation prepared 2026-09-09 from the official text only; the official text prevails.*

---
Cite as: DPDP Rules, 2025, r. 5. Official source: https://egazette.gov.in/WriteReadData/2025/267650.pdf