Security

    What are the potential penalties if we fail to protect customer data properly?

    Short Answer

    Penalties can reach up to ₹250 crore depending on the severity, plus reputational damage and loss of customer trust.

    Answer

    Penalties can go up to ₹250 crore, depending on the severity of the violation, especially in cases of data breaches or failure to implement proper safeguards.

    Beyond financial penalties, businesses also face reputational damage and loss of customer trust, which can have long-term impact on growth and retention.

    Law Reference

    DPDP Penalty Framework (as per Schedule)

    Business Impact

    Beyond financial penalties, non-compliance leads to brand erosion, customer churn, and potential business disruption from regulatory investigations.

    Real-World Example

    A fintech company failing to encrypt customer financial data faces a ₹50 crore penalty after a breach, plus significant customer attrition due to trust loss.

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