DSCI Certified Privacy Professional (DCPP) — Question 8

For negligence in implementing and maintaining the reasonable security practices and procedures for protecting Sensitive Personal Data or Information (SPDI) as mentioned in Section 43A and associated rules under IT (Amendment) Act, 2008, a corporate entity may be liable to pay compensation of up to___________

Answer options

• A. Rs. 50,000,000
• B. Rs. 500,000,000
• C. Rs. 5,000,000
• D. Upper limit not defined

Correct answer: D

Explanation

The correct answer is D because the IT (Amendment) Act, 2008 does not specify a maximum limit for compensation in cases of negligence concerning SPDI. Options A, B, and C suggest fixed amounts which do not apply, as the law allows for compensation to be determined on a case-by-case basis without a defined upper limit.