Section 33: Penalties

Simple Explanation

Section 33 empowers the Board to impose monetary penalties for significant breaches: Penalty Factors Considered: 1. Nature, Gravity, and Duration: How serious and how long the breach lasted. 2. Type of Data: Whether sensitive or high-risk data was involved. 3. Repetitive Nature: Whether the entity has breached before. 4. Gain or Loss: Whether the entity gained or avoided loss from the breach. 5. Mitigation: What steps were taken to fix the problem and how effective they were. 6. Proportionality and Deterrence: The penalty should be enough to deter future breaches. 7. Impact on the Person: How the penalty would affect the violating entity. The actual penalty amounts are listed in the Schedule (up to ₹250 crore for security safeguard failures, ₹50 crore for other breaches, and ₹10,000 for Data Principal duty breaches).

Key Points

  • ✓Board can impose monetary penalties for significant breaches
  • ✓Considers nature, gravity, and duration of breach
  • ✓Considers type of data and repetitive nature
  • ✓Considers gain/loss and mitigation efforts
  • ✓Penalty must be proportionate and deterrent
  • ✓Actual amounts specified in the Schedule

Official Text (Summary)

If the Board determines a significant breach of the Act, it may impose monetary penalties as specified in the Schedule. Factors for determining penalty amount include: nature, gravity, and duration of breach; type and nature of data affected; repetitive nature; gain or loss from breach; mitigation efforts; proportionality and deterrence; and impact on the person.

Source: The Digital Personal Data Protection Act, 2023 (No. 22 of 2023), Ministry of Law and Justice.

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