Law4u - Made in India

What Are The Penalties Under The DPDP Act, 2023?

Answer By law4u team

The Digital Personal Data Protection Act, 2023 (DPDP Act) establishes a comprehensive framework for the protection of personal data in India. It outlines specific penalties for various breaches to ensure compliance and safeguard individuals' privacy. The Data Protection Board (DPB) is empowered to impose these penalties, considering factors such as the nature and gravity of the breach, the type of personal data affected, and the actions taken by the data fiduciary to mitigate the breach.

Penalties Under the DPDP Act, 2023

Offence Maximum Penalty
Failure to take reasonable security safeguards to prevent data breaches ₹250 Crores
Failure to notify the Board or affected data principal of a data breach ₹200 Crores
Breach of obligations related to children's data ₹200 Crores
Breach of obligations by significant data fiduciaries ₹150 Crores
Breach of duties by data principals ₹10,000
Breach of terms of voluntary undertaking accepted by the Board Up to applicable breach penalty
Breach of any other provision of the Act or rules made thereunder ₹50 Crores

Note: All penalties are credited to the Consolidated Fund of India.

Factors Considered in Determining Penalties

The Data Protection Board considers the following factors when determining the amount of monetary penalty:

  • Nature, gravity, and duration of the breach
  • Type and nature of the personal data affected
  • Repetitive nature of the breach
  • Gain or loss resulting from the breach
  • Mitigating actions taken and their effectiveness
  • Proportionality and effectiveness of the penalty in ensuring compliance
  • Likely impact of the penalty on the offender

Example

Scenario:
A significant data fiduciary fails to implement reasonable security safeguards, resulting in a data breach affecting a large number of individuals' personal data.

Steps:

  • Incident Occurrence: The data fiduciary's system is compromised due to inadequate security measures.
  • Notification: The fiduciary fails to notify the Data Protection Board or the affected individuals within the stipulated time frame.
  • Investigation: The Data Protection Board conducts an inquiry and determines the breach is significant.
  • Penalty Imposition: Considering the factors mentioned above, the Board imposes a penalty of ₹150 Crores on the data fiduciary.

This example illustrates the process and considerations involved in the imposition of penalties under the DPDP Act, 2023.

Our Verified Advocates

Get expert legal advice instantly.

Advocate Mohammed Maqdoom Ali

Advocate Mohammed Maqdoom Ali

Domestic Violence, Divorce, High Court, Family, Property, Recovery, Child Custody, Civil, Anticipatory Bail, Muslim Law

Get Advice
Advocate Avinash Verma

Advocate Avinash Verma

Arbitration, Banking & Finance, Cheque Bounce, Civil, Court Marriage, Cyber Crime, Divorce, Property, Recovery, Trademark & Copyright

Get Advice
Advocate Wankhede Ravindra B

Advocate Wankhede Ravindra B

Anticipatory Bail, Civil, Consumer Court, Court Marriage, Cyber Crime, Divorce, Trademark & Copyright, Motor Accident, Labour & Service, Landlord & Tenant, Insurance, Family, High Court, Cheque Bounce, Banking & Finance, Domestic Violence, Medical Negligence, Recovery, Patent, Property, Revenue, Criminal, Corporate, Arbitration

Get Advice
Advocate Ashwini N

Advocate Ashwini N

Criminal, Civil, Family, Divorce, Cheque Bounce

Get Advice
Advocate Vishakha Mangesh Jadhav

Advocate Vishakha Mangesh Jadhav

Anticipatory Bail,High Court,Domestic Violence,Wills Trusts,Cheque Bounce,

Get Advice
Advocate Romesh Pratap Singh

Advocate Romesh Pratap Singh

Anticipatory Bail, Arbitration, Breach of Contract, Cheque Bounce, Child Custody, Civil, Consumer Court, Corporate, Court Marriage, Criminal, Cyber Crime, Divorce, Documentation, Domestic Violence, Family, High Court, Insurance, Labour & Service, Landlord & Tenant, Medical Negligence, Motor Accident, Muslim Law, Property, Recovery, Succession Certificate, Supreme Court

Get Advice
Advocate Raghav Agrawal

Advocate Raghav Agrawal

Anticipatory Bail,Arbitration,Banking & Finance,Cheque Bounce,Civil,Consumer Court,Court Marriage,Criminal,Documentation,Family,High Court,Labour & Service,Landlord/Tenant,Motor Accident,NCLT,Property,Recovery,Succession Certificate,Supreme Court,

Get Advice
Advocate Pratyushpramit Pattnaik

Advocate Pratyushpramit Pattnaik

Anticipatory Bail, Arbitration, Bankruptcy & Insolvency, Banking & Finance, Breach of Contract, Cheque Bounce, Child Custody, Civil, Consumer Court, Corporate, Customs & Central Excise, Criminal, Cyber Crime, Divorce, Documentation, Domestic Violence, Family, High Court, Insurance, Labour & Service, Landlord & Tenant, Medical Negligence, Motor Accident, Muslim Law, Property, R.T.I, Recovery, RERA, Succession Certificate, Trademark & Copyright, Wills Trusts, GST, Armed Forces Tribunal, Media and Entertainment, Revenue, Court Marriage

Get Advice

Cyber and Technology Law Related Questions

Discover clear and detailed answers to common questions about Cyber and Technology Law. Learn about procedures and more in straightforward language.