Source: The post is based on the article “G20 document prepared by World Bank lauds India’s progress” published in PIB on 9th September 2023
What is the News?
The G20 Global Partnership for Financial Inclusion document prepared by the World Bank has lauded the transformative impact of Digital Public Infrastructure (DPI) in India over the past decade under the Central Government.
What is Digital Public Infrastructure(DPI)?
What did the World Bank document say about India’s Digital Public Infrastructure(DPI)?
World Bank document discusses the significant achievements and impact of India’s Digital Public Infrastructure (DPI) in various areas:
Financial Inclusion: India’s DPI particularly the JAM (short for Jan Dhan-Aadhaar-Mobile) Trinity, has greatly improved financial inclusion, increasing the adult inclusion rate from 25% to over 80% in just six years.This progress would have taken decades without DPI.
Government to Person (G2P) Payments: India’s digital G2P system, built on DPI, has facilitated the transfer of $361 billion directly to beneficiaries through various government schemes, resulting in significant savings.
UPI (Unified Payments Interface): UPI transactions in May 2023 alone exceeded 9.41 billion.For the fiscal year 2022–23, the total value of UPI transactions was nearly 50 percent of India’s nominal GDP.
DPI Benefits for the Private Sector: DPI has increased efficiency for private organizations by reducing complexity, costs, and processing times.This has had positive effects on sectors such as SME lending, depreciation costs and fraud detection.
Lower KYC Compliance Costs: The India Stack has digitized and simplified KYC procedures, reducing banks’ compliance costs from $0.12 to $0.06 and making it more profitable to serve lower-income clients.
Cross-Border Payments: The UPI-PayNow interlinking between India and Singapore, operationalized in February 2023, promotes faster, cheaper, and more transparent cross-border payments.
Account Aggregator (AA) Framework: India’s AA Framework, regulated by RBI, enables individuals and enterprises to share data securely and with consent. There are 1.13 billion cumulative accounts enabled for data sharing.
Data Empowerment and Protection Architecture (DEPA): DEPA empowers individuals to control their data and share it across providers, fostering innovation and competition without heavy investments in client relationships.
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