SMEs • Compliance
What SMEs Must Do Before the 2025 DPDP Penalties Kick In
Published on August 28, 2024
Many SMEs assume the DPDP Act only applies to large companies — wrong. The Act applies to any Indian business that collects personal data, including:
- retail
- real estate
- software
- service providers
- clinics
- coaching centers
- startups
Penalties begin hitting hard in 2025.
Here’s what SMEs must do before then.
1. Fix Your Website First
Most SME websites leak personal data because of:
- insecure forms
- lack of HTTPS
- outdated WordPress versions
- exposed admin panels
- poor storage practices
Your website is the biggest DPDP risk factor.
2. Create a Consent System
No more:
- auto-collected data
- hidden clauses
- forced opt-ins
3. Secure Your Customer Database
Stop storing customer details in:
- Excel files
- Google Sheets
- CRM exports sitting on desktop
Move to encrypted, access-controlled systems.
4. Train Employees
SMEs suffer breaches mainly due to:
- weak passwords
- phishing
- sharing data casually
Basic training reduces 60% of risk.
5. Document Your Breach Response SOP
You don’t need a huge legal document. You just need:
- steps
- roles
- timelines
- notification procedure
6. Conduct a Technical Compliance Review
This is the fastest way to check:
- what is non-compliant
- what is exposed
- what needs fixing
SMEs who wait will end up paying more later.
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