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Under the Digital Personal Data Protection Act, 2023, which statement about penalties imposed by the Data Protection Board is correct?

Under Section 34 of the DPDP Act, 2023, every sum realised as a penalty imposed by the Data Protection Board goes to the Consolidated Fund of India. It is not kept by the Board, paid to the Data Principal, or credited to a State fund.

  1. AAll sums realised as penalties imposed by the Board are credited to the Consolidated Fund of IndiaCorrect
  2. BPenalties are retained by the Board to fund its operations
  3. CPenalties are paid to the affected Data Principal as compensation
  4. DPenalties are credited to the Consolidated Fund of the State where the Data Fiduciary is located

Explanation

Section 34 of the DPDP Act, 2023 states that all sums realised by way of penalties imposed by the Board under the Act shall be credited to the Consolidated Fund of India. They are therefore neither retained by the Board nor paid to the Data Principal.

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