Penalties under the Act may extend up

Solution

Explanation: The Act prescribes hefty penalties for non-compliance, with fines extending up to ₹500 crore depending on the nature and severity of the breach. This high penalty ceiling acts as a strong deterrent against negligent or reckless handling of personal data. It ensures fiduciaries adopt strict data protection measures and remain accountable. The graded penalty system empowers the Data Protection Board to impose proportionate fines, balancing enforcement with fairness based on specific violations.