India's Digital Public Infrastructure for Governance Reforms
India has pioneered the development of digital public infrastructure aimed at governance reforms, with foundational systems like Aadhaar and the Unified Payments Interface (UPI) serving as versatile tools for various applications.
Aadhaar and Its Applications
Aadhaar provides a unique identity to every resident and supports online authentication across multiple services.
- Services such as e-KYC, e-Sign, and DigiLocker have been built on Aadhaar.
- These services simplify tasks like opening bank accounts, obtaining SIM cards, filing tax returns, and storing digital documents.
Challenges in Adoption
Despite technological advancements, India has been slow in adopting these innovations, resulting in inefficiencies and missed opportunities.
Aadhaar as KYC for Banking
Initial discussions with the finance ministry and RBI started in 2010-11, but formal approval for Aadhaar-based KYC for banks came only in August 2013.
- Aadhaar e-KYC reduced customer onboarding costs, boosting financial inclusion to 82% of Indian adults holding bank accounts.
Aadhaar for Mobile SIMs
Despite efforts from 2011-12, Aadhaar was accepted for SIM verification only in 2016, after lengthy delays due to vague security concerns.
Airport Entry using Aadhaar
A proposal to use Aadhaar for express lanes at airports was rejected in 2014-15 due to unspecified security concerns, delaying similar implementations until 2022.
PM-WANI: Public WiFi Initiative
The PM-WANI initiative aimed to democratize internet access was stalled for three years despite being conceived in 2015-16.
eRUPI: Digital Vouchers
Launched in August 2021, eRUPI is a person- and purpose-specific digital voucher designed to ensure targeted usage of funds.
Digital Health Records
The Ayushman Bharat Digital Mission (ABDM), launched in September 2021, aims to build a robust digital health infrastructure. However, its potential remains underutilized due to slow adoption and resistance from private healthcare providers.
Conclusion
While India has made significant advances in building digital public infrastructure, delays in adoption often result from bureaucratic inertia, regulatory hesitancy, and resistance to change. Timely adoption of technology is crucial for creating a citizen-friendly and efficient ecosystem.