{"id":33049,"date":"2026-09-04T01:41:14","date_gmt":"2026-09-03T20:11:14","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=33049"},"modified":"2026-09-04T01:45:26","modified_gmt":"2026-09-03T20:15:26","slug":"dpdp-act-2023-7-major-penalty-areas-business-should-know","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/dpdp-act-2023-7-major-penalty-areas-business-should-know\/","title":{"rendered":"DPDP Act, 2023: 7 Major Penalty Areas Business Should Know"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a99ed9beef09\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a99ed9beef09\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/dpdp-act-2023-7-major-penalty-areas-business-should-know\/#DPDP_Act_2023_7_Major_Penalty_Areas_Every_Business_Should_Know\" title=\"DPDP Act, 2023: 7 Major Penalty Areas Every Business Should Know\">DPDP Act, 2023: 7 Major Penalty Areas Every Business Should Know<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/dpdp-act-2023-7-major-penalty-areas-business-should-know\/#Why_the_Digital_Personal_Data_Protection_Act_2023_Matters\" title=\"Why the Digital Personal Data Protection Act, 2023, Matters\">Why the Digital Personal Data Protection Act, 2023, Matters<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/dpdp-act-2023-7-major-penalty-areas-business-should-know\/#1_Failure_to_Implement_Adequate_Data_Security_Measures\" title=\"1. Failure to Implement Adequate Data Security Measures\">1. Failure to Implement Adequate Data Security Measures<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/dpdp-act-2023-7-major-penalty-areas-business-should-know\/#2_Failure_to_Report_a_Personal_Data_Breach\" title=\"2. Failure to Report a Personal Data Breach\">2. Failure to Report a Personal Data Breach<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/dpdp-act-2023-7-major-penalty-areas-business-should-know\/#3_Non-Compliance_in_Processing_Childrens_Data\" title=\"3. Non-Compliance in Processing Children&#8217;s Data\">3. Non-Compliance in Processing Children&#8217;s Data<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/dpdp-act-2023-7-major-penalty-areas-business-should-know\/#4_Violations_by_Significant_Data_Fiduciaries_SDFs\" title=\"4. Violations by Significant Data Fiduciaries (SDFs)\">4. Violations by Significant Data Fiduciaries (SDFs)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/dpdp-act-2023-7-major-penalty-areas-business-should-know\/#5_Breach_of_Duties_by_Data_Principals\" title=\"5. Breach of Duties by Data Principals\">5. Breach of Duties by Data Principals<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/dpdp-act-2023-7-major-penalty-areas-business-should-know\/#6_Violation_of_a_Voluntary_Undertaking\" title=\"6. Violation of a Voluntary Undertaking\">6. Violation of a Voluntary Undertaking<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/dpdp-act-2023-7-major-penalty-areas-business-should-know\/#7_Other_Data_Protection_Violations\" title=\"7. Other Data Protection Violations\">7. Other Data Protection Violations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/dpdp-act-2023-7-major-penalty-areas-business-should-know\/#Digital_Personal_Data_Protection_Act_2023_Compliance_Is_More_Than_an_IT_Function\" title=\"Digital Personal Data Protection Act, 2023 Compliance Is More Than an IT Function\">Digital Personal Data Protection Act, 2023 Compliance Is More Than an IT Function<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/dpdp-act-2023-7-major-penalty-areas-business-should-know\/#Key_Takeaway\" title=\"Key Takeaway\">Key Takeaway<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-33050\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/09\/WhatsApp-Image-2026-08-26-at-3.33.53-PM.jpeg\" alt=\"DPDP Act, 2023\" width=\"1254\" height=\"1254\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/09\/WhatsApp-Image-2026-08-26-at-3.33.53-PM.jpeg 1254w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/09\/WhatsApp-Image-2026-08-26-at-3.33.53-PM-300x300.jpeg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/09\/WhatsApp-Image-2026-08-26-at-3.33.53-PM-1024x1024.jpeg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/09\/WhatsApp-Image-2026-08-26-at-3.33.53-PM-150x150.jpeg 150w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/09\/WhatsApp-Image-2026-08-26-at-3.33.53-PM-768x768.jpeg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/09\/WhatsApp-Image-2026-08-26-at-3.33.53-PM-800x800.jpeg 800w\" sizes=\"(max-width: 1254px) 100vw, 1254px\" \/><\/p>\n<div>\n<h2><span class=\"ez-toc-section\" id=\"DPDP_Act_2023_7_Major_Penalty_Areas_Every_Business_Should_Know\"><\/span><span style=\"color: #000080;\">DPDP Act, 2023: 7 Major Penalty Areas Every Business Should Know<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>The Digital Personal Data Protection Act, 2023, marks a significant step in India&#8217;s data privacy framework. The law governs how organizations collect, process, store, and protect digital personal data and applies to businesses, startups, professionals, e-commerce platforms, and other entities that handle personal information digitally.<\/li>\n<li>With penalties ranging from INR 10,000 to INR 250 crore, non-compliance can create substantial financial and reputational risks for organizations.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Why_the_Digital_Personal_Data_Protection_Act_2023_Matters\"><\/span><span style=\"color: #000080;\">Why the Digital Personal Data Protection Act, 2023, Matters<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>Today, businesses routinely collect personal information such as customer names and contact details, email addresses, employee records, financial information, user account data, and online transaction records.<\/li>\n<li>The Digital Personal Data Protection Act, 2023, requires organizations to process such information responsibly, transparently, and securely.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"1_Failure_to_Implement_Adequate_Data_Security_Measures\"><\/span><span style=\"color: #000080;\">1. Failure to Implement Adequate Data Security Measures<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Penalty: Up to INR 250 Crore: The highest penalty under the Digital Personal Data Protection Act, 2023, may be imposed where an organization fails to take reasonable security safeguards to protect personal data. Examples include:<\/p>\n<ul>\n<li>Weak cybersecurity controls<\/li>\n<li>Unauthorized access to data<\/li>\n<li>Data leaks due to poor security practices<\/li>\n<li>Inadequate system protection<\/li>\n<\/ul>\n<p>Businesses must implement robust technical and organizational measures to prevent personal data breaches.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Failure_to_Report_a_Personal_Data_Breach\"><\/span><span style=\"color: #000080;\">2. Failure to Report a Personal Data Breach<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Penalty: Up to INR 200 Crore: In the event of a personal data breach, organizations are required to notify <span style=\"font-size: 16px;\">the Data Protection Board of India and <\/span><span style=\"font-size: 16px;\">affected individuals, where applicable. <\/span>Failure to report a breach within the prescribed framework can result in significant penalties.\u00a0Examples include:<\/p>\n<ul>\n<li>Concealing a cyberattack<\/li>\n<li>Delayed breach reporting<\/li>\n<li>Failure to notify affected users<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"3_Non-Compliance_in_Processing_Childrens_Data\"><\/span><span style=\"color: #000080;\">3. Non-Compliance in Processing Children&#8217;s Data<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #000080;\">Penalty: Up to INR 200 Crore :\u00a0<\/span>Special obligations apply when processing personal data relating to children and persons with disabilities requiring lawful guardianship support. Organizations must comply with enhanced protection requirements and obtain the necessary consent before processing such data.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Violations_by_Significant_Data_Fiduciaries_SDFs\"><\/span><span style=\"color: #000080;\">4. Violations by Significant Data Fiduciaries (SDFs)<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Penalty: Up to INR 150 Crore: Certain organizations may be classified as Significant Data Fiduciaries (SDFs) based on factors such as <span style=\"font-size: 16px;\">volume of personal data processed, <\/span><span style=\"font-size: 16px;\">risk to individuals, and impact<\/span><span style=\"font-size: 16px;\">\u00a0on national interests.\u00a0\u00a0<\/span>SDFs are subject to additional compliance requirements, including:<\/p>\n<ul>\n<li>Appointing a Data Protection Officer<\/li>\n<li>Conducting periodic audits<\/li>\n<li>Maintaining compliance mechanisms<\/li>\n<\/ul>\n<p>Failure to meet these obligations may attract substantial penalties.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_Breach_of_Duties_by_Data_Principals\"><\/span><span style=\"color: #000080;\">5. Breach of Duties by Data Principals<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Penalty: Up to INR 10,000: The Digital Personal Data Protection Act, 2023, also imposes responsibilities on individuals (data principals). Penalties may apply for providing false information, impersonation, and filing frivolous or malicious complaints. Although comparatively small, these provisions discourage misuse of the complaint process.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"6_Violation_of_a_Voluntary_Undertaking\"><\/span><span style=\"color: #000080;\">6. Violation of a Voluntary Undertaking<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Penalty: Variable\u00a0organizations may provide a voluntary undertaking\u00a0to the Data Protection Board to address non-compliance issues.\u00a0However, if the organization subsequently breaches that undertaking, it may face penalties relating to the original violation, potentially leading to significant financial consequences.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"7_Other_Data_Protection_Violations\"><\/span><span style=\"color: #000080;\">7. Other Data Protection Violations<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Penalties as Prescribed: The Digital Personal Data Protection Act, 2023, also covers a range of other compliance obligations, including <span style=\"font-size: 16px;\">valid consent management, <\/span><span style=\"font-size: 16px;\">lawful processing of personal data, <\/span><span style=\"font-size: 16px;\">data minimization practices, <\/span><span style=\"font-size: 16px;\">purpose limitation, <\/span><span style=\"font-size: 16px;\">grievance redressal mechanisms, and <\/span><span style=\"font-size: 16px;\">data retention and deletion requirements.\u00a0<\/span><\/li>\n<li>Failure to comply with these obligations may result in penalties as determined under the Act.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Digital_Personal_Data_Protection_Act_2023_Compliance_Is_More_Than_an_IT_Function\"><\/span><span style=\"color: #000080;\">Digital Personal Data Protection Act, 2023 Compliance Is More Than an IT Function<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>A common misconception is that data protection is solely the responsibility of the IT department.<\/li>\n<li>In reality, Digital Personal Data Protection Act, 2023, compliance affects multiple business functions: management, human resources, marketing teams, finance departments, customer support functions, and technology teams.<\/li>\n<li>Every organization must evaluate how personal data is collected, stored, processed, shared, and secured throughout its operations.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Key_Takeaway\"><\/span><span style=\"color: #000080;\">Key Takeaway<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-33052\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/09\/DPDP-act-.png\" alt=\"Why the Digital Personal Data Protection Act, 2023, Matters\" width=\"680\" height=\"632\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/09\/DPDP-act-.png 470w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2026\/09\/DPDP-act--300x279.png 300w\" sizes=\"(max-width: 680px) 100vw, 680px\" \/><\/p>\n<p>The Digital Personal Data Protection Act, 2023, introduces a strong data protection framework with penalties ranging from INR 10,000 to INR 250 crore. Businesses should proactively review their data governance practices, implement security safeguards, establish breach response procedures, and ensure lawful handling of personal information. As regulatory enforcement evolves, data privacy will increasingly become both a compliance requirement and a critical business risk management priority<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>DPDP Act, 2023: 7 Major Penalty Areas Every Business Should Know The Digital Personal Data Protection Act, 2023, marks a significant step in India&#8217;s data privacy framework. The law governs how organizations collect, process, store, and protect digital personal data and applies to businesses, startups, professionals, e-commerce platforms, and other entities that handle personal information &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10212,1],"tags":[10548],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/33049"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=33049"}],"version-history":[{"count":3,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/33049\/revisions"}],"predecessor-version":[{"id":33054,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/33049\/revisions\/33054"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=33049"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=33049"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=33049"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}