Govt to Use Risk, User Base for 'Significant Data Fiduciary' Tag, Signals Flexibility

• The Centre will not use rigid definitions for "significant data fiduciaries" (SDFs), opting for a flexible, case-by-case assessment by a government committee.
• The Digital Personal Data Protection Act, 2023, mandates stringent norms for SDFs to protect personal and sensitive data.
• MeitY held a meeting with digital platforms on January 22 and plans further consultations to finalize criteria.
• Parameters like user numbers for social media and data sensitivity for payments/health platforms will determine SDF status.
• The government is considering shortening compliance timelines for large tech companies (12 months) while giving startups a longer runway, a move expected to face resistance.

Why It Matters: Government adopts a flexible, consultative approach to identify 'significant data fiduciaries' based on risk and user base.