Directions: In the questions given below, a blank has been provided for each and needs to be filled with the appropriate word. Choose the best option among the given ones. With increasing adoption of digital payments and reliance on electronic banking ecosystem, India must have a data localization mandate to avoid data _________.

Step-by-step solution

The statement wants India to store its data domestically. One of the obvious reasons could be to avoid data leak. This eliminates safety as it is the opposite of the correct meaning. Thief is incorrect as it is the action of stealing i.e. theft that is to be avoided here. Reduction clearly does not fit in while substantiate means to provide evidence to support and does not fit in the blank. Only pilferage meaning leakage fits in well. Hence, option B is correct.