Fintech Services in india has been facilitated by digital infrastructure including Aadhaar, PM JanDhan Yojana, India Stack, UPI, etc.
“To enable more, the scope of documents available in digilocker for individuals will be expanded. An entity digilocker will be used by MSMEs, large businesses and charitable trusts for storing and sharing data online securely whenever needed,” stated Finance Minister Nirmala Sitharaman in her Budget speech on Wednesday.
The move is aimed to boost the Digital India Initiative and also to aid fintech and other KYC related activities in the country.
DigiLocker was launched by the Ministry of Electronics and Information Technology in 2015 under the Digital India Initiative. The app allows one to store and share important government verified documents.
Digital payments continue to find wide acceptance. In 2022, they show increase of 76 percent in transactions and 91 percent in value.
The Economic Survey 2023 also highlighted the economic growth of the country led by digital infrastructure and how the digital enablements are nurturing India’s vision of a $1 trillion digital economy by 2025.
“Fiscal support for this digital public infrastructure will continue in 2023-24,” the Finance Minister further stated.
Simplification of KYC process
“The KYC process will be simplified adopting a ‘risk-based’ instead of ‘one size fits all’ approach. The financial sector regulators will also be encouraged to have a KYC system fully amenable to meet the needs of Digital India,” Nirmala Sitharaman said.
She is also looking to establish a one stop solution for identity and address updating.
“A one stop solution for reconciliation and updating of identity and address of individuals maintained by various government agencies, regulators and regulated entities will be established using DigiLocker service and Aadhaar as foundational identity,” she said.
Both the announcements will aid the ease of doing business and further push India to achieve a next level of digital India.
