Readiness assessment
The Act
The DPDP Act, explainedThe DPDP Rules 2025

Ch IPreliminary

S.1 Short title and commencementS.2 DefinitionsS.3 Application and scope

Ch IIObligations of Data Fiduciary

S.4 Grounds for processingS.5 NoticeS.6 ConsentS.7 Certain legitimate usesS.8 Data Fiduciary obligationsS.9 Children’s dataS.10 Significant Data Fiduciary

Ch IIIRights and duties of Data Principal

S.11 Right to accessS.12 Correction and erasureS.13 Grievance redressalS.14 Right to nominateS.15 Duties of the Data Principal

Ch IVSpecial provisions

S.16 Transfer outside IndiaS.17 Exemptions

Ch VData Protection Board of India

S.18 Establishment of the BoardS.19 Composition of the BoardS.20 Salary and term of officeS.21 DisqualificationsS.22 Resignation and vacanciesS.23 Proceedings of the BoardS.24 Officers and employeesS.25 Members as public servantsS.26 Powers of the Chairperson

Ch VIBoard powers and procedure

S.27 Powers and functions of the BoardS.28 Procedure followed by the Board

Ch VIIAppeal and dispute resolution

S.29 Appeal to the Appellate TribunalS.30 Tribunal orders as a decreeS.31 Alternate dispute resolutionS.32 Voluntary undertaking

Ch VIIIPenalties

S.33 Penalties and the ScheduleS.34 Penalties to Consolidated Fund

Ch IXMiscellaneous

S.35 Good-faith protectionS.36 Power to call for informationS.37 Blocking of accessS.38 Consistency with other lawsS.39 Bar of jurisdictionS.40 Power to make rulesS.41 Laying of rules before ParliamentS.42 Power to amend the ScheduleS.43 Power to remove difficultiesS.44 Amendments to other Acts
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About
Readiness assessment

Concept

Financial Penalty

A financial penalty is the monetary penalty the Board may impose for a significant breach, in the amounts set out in the Schedule.

Defined inSection 33 / The Schedule
CategoryEnforcement & Institutions
Applies toAny person in breach of the Act

TL;DR

A financial penalty (Section 33 and the Schedule) is the monetary penalty the Data Protection Board may impose after an inquiry for a significant breach, always after a hearing. Amounts reach up to 250 crore rupees for weak security and 200 crore for breach-notification or children's-data failings.

What Does the DPDP Act Say About Financial Penalties?

DPDP Act 2023, Section 33(1)

If the Board determines on conclusion of an inquiry that breach of the provisions of this Act or the rules made thereunder by a person is significant, it may, after giving the person an opportunity of being heard, impose such monetary penalty specified in the Schedule.

What is a Financial Penalty in Simple Words?

Penalties are decided by the Board after an inquiry, and only where the breach is significant. The person always gets a hearing first.

The amounts are steep: up to two hundred and fifty crore rupees for weak security, two hundred crore for breach-notification or children's failings, one hundred and fifty crore for SDF failings, and fifty crore for other breaches.

Financial Penalty: Example

A company with poor security that suffers a major breach could face a penalty of up to two hundred and fifty crore rupees.

Related terms

Related sections of the Act

Related Rules

Financial Penalty: Frequently Asked Questions

What is the maximum penalty?

Up to two hundred and fifty crore rupees, for failing to take reasonable security safeguards.

Who imposes penalties?

The Data Protection Board, after an inquiry and a hearing, where the breach is significant.

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