DPDP Penalties Explained
Understanding the risks, liabilities, and how to stay safe under India’s new law.
Penalties under the Digital Personal Data Protection Act, 2023 are proportionate, contextual, and based on accountability, with emphasis on preparedness and responsible handling of personal data.
The Core Facts
Are Penalties Automatic?
No. A data breach alone does not trigger a fine. The Board considers your response, safeguards, and cooperation before deciding.
Who Decides?
The Data Protection Board of India. It evaluates facts, evidence, and conduct in a reasoned, procedural manner.
What Triggers Them?
Negligence, such as ignoring security obligations, failing to report breaches, or repeatedly ignoring user rights.
How Are Penalties Calculated?
Penalties are capped (have a maximum limit) and proportionate. When deciding the amount, authorities look at:
- The nature and gravity of the violation.
- The duration of non-compliance.
- The type of personal data involved.
- Steps taken to mitigate the damage.
Important Note: The law sets “Maximum Limits” (e.g., up to ₹250 Cr for major breaches), but these are upper boundaries, not default starting points.
Does Effort Matter?
Personal data means any data about an individual who is identifiable by or in relation to such data.
| Your Organization’s Behavior | Likely Outcome |
| No safeguards, ignored warnings | 🔴 Higher Penalty Risk |
| Repeated negligence | 🔴 Higher Penalty Risk |
| Basic safeguards, prompt response | 🟢 Lower Penalty Risk |
| Transparent cooperation | 🟢 Lower Penalty Risk |
Compliance Builds Confidence
Penalties are a risk management mechanism, not a threat. Well-prepared organizations rarely face the harshest outcomes.