Hello Piyush Kadam /EXT/TECH/ISEC/MUMBAI,
To follow up on my previous explanation regarding Access Control Lists, I want to add that Windows Server does not natively support assigning a unique, standalone password to a specific directory within a file share. My initial recommendation focused on the Microsoft best practice of identity-based security via NTFS and SMB permissions, which silently authenticates users based on their Active Directory or local SAM credentials. Because the Windows operating system relies entirely on Kerberos v5 or NTLMv2 tokens for access validation, there is no built-in graphical or command-line mechanism to force a secondary password prompt when a user attempts to open a folder.
If your strict requirement is to have a directory prompt for a manual password regardless of the logged-in user's session token, you are encountering a native limitation of the Windows Server File and Storage Services architecture. Native encryption features like the Encrypting File System rely on user certificates, and BitLocker operates entirely at the volume level; neither will provide the share-level folder password prompt you are requesting. Consequently, the definitive resolution requires abandoning the legacy password-protected folder concept and strictly implementing the aforementioned NTFS permission structure to restrict access exclusively to authorized security principals. If you absolutely require a password prompt for a specific dataset before opening it over the network, you must encapsulate that data within a password-protected encrypted archive format or deploy a third-party secure workspace solution, as Microsoft intentionally delegates this access control to identity token validation.
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VP