{"id":254179,"date":"2023-07-31T20:46:07","date_gmt":"2023-07-31T15:16:07","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=254179"},"modified":"2023-08-31T10:05:39","modified_gmt":"2023-08-31T04:35:39","slug":"pathways-for-digital-inclusion","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/pathways-for-digital-inclusion\/","title":{"rendered":"Pathways for digital inclusion"},"content":{"rendered":"\n

Source<\/strong>– The post is based on the article \u201cPathways for digital inclusion\u201d <\/strong>published in The Indian Express <\/strong>on 31st July 2023<\/strong>.<\/p>\n

Syllabus: <\/strong>GS 2 – e-governance. GS 3 – Inclusive growth<\/p>\n

Relevance:<\/strong> Issues related to flooding in cities<\/p>\n

News-<\/strong> The article explains the Indian DPI and issues related to it.<\/p>\n

What are some facts about DPI in India?<\/strong><\/h2>\n

DPIs replicate physical infrastructures<\/strong>. These DPIs are digital pathway<\/strong>s for seamless provision of essential services. <\/strong><\/p>\n

The Indian DPI ecosystem is envisioned as \u201cIndia Stack\u201d<\/strong>. India Stack is interconnected yet independent \u201cblocks of a stack<\/strong>\u201d. Each block ensures financial and social inclusion<\/strong> across sectors and benefits a diverse population.<\/p>\n

It has multiple use cases<\/strong>. It generates novel solutions that drive innovation, inclusion and competition<\/strong> in the digital space.<\/p>\n

What are successful examples of DPI in India?<\/strong><\/h2>\n

Aadhaar<\/strong> has facilitated financial inclusion. <\/strong><\/p>\n

The Jan Dhan-Aadhaar-Mobile trinity<\/strong> has ensured the direct benefit transfers of welfare subsidies<\/strong> to bank accounts of the beneficiaries.<\/p>\n

Unified Payments Interface<\/strong> has enabled citizens to transfer money<\/strong> from one bank account to another bank account digitally.<\/p>\n

Future of India\u2019s DPI involves sector specific DPIs<\/strong> such as account aggregators, Open Network for Digital Commerce, Ayushman Bharat Digital Mission and Agristack.<\/strong><\/p>\n

What should be done?<\/strong><\/h2>\n

Placing users at the forefront- <\/strong><\/p>\n

User-centric design<\/strong> is needed to reduce the risks related to use of technology and reduce the inequalities <\/strong>amongst rural and urban populations, genders or economic groups.<\/p>\n

For DPI usage, compatible protocols<\/strong> for feature phones, assisted-tech models and Interactive Voice Response System <\/strong>should be implemented. These should provide support to consumers with limited smartphone access or low digital literacy. <\/strong><\/p>\n

The RBI\u2019s launch of UPI123Pay <\/strong>is an example of inclusivity. It gives feature phone owners an app that enables them with most UPI features.<\/p>\n

Inclusion<\/strong>– It should be a key policy objective<\/strong> for DPI participants. It must be embedded within the regulatory framework. <\/strong><\/p>\n

Several countries like Nigeria, the UK and Brazil, have adopted open banking for financial inclusion within the regulatory framework<\/strong>. Estonia\u2019s information policy emphasises avoiding information disparities<\/strong> between regions or communities.<\/p>\n

There is a need to identify the underserved target segments<\/strong> and develop use cases <\/strong>that caters to their needs for promoting inclusion.<\/p>\n

For instance, MSMEs have limited access to formal sources of credit<\/strong>. The account aggregator ecosystem<\/strong> can ensure access to low-cost, low-ticket-size, collateral-free sources of credit<\/strong> by utilising the digital trail<\/strong> of all consented transactional data.<\/p>\n

For the successful implementation of any digital public infrastructure on a large scale, it is essential to establish meaningful engagement with the DPI.<\/strong> Digital connectivity and literacy <\/strong>are big challenges in India, and addressing these issues becomes crucial.<\/p>\n

Offline channels<\/strong> should be considered, alongside efforts to enhance institutional capacity<\/strong> for generating trust and awareness<\/strong>. This approach not only ensures access to the last mile for vulnerable consumers.<\/strong><\/p>\n

For example,<\/strong> business correspondents<\/strong> play a crucial role as intermediaries that banks rely on to expand access to and usage of financial products.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source– The post is based on the article \u201cPathways for digital inclusion\u201d published in The Indian Express on 31st July 2023. Syllabus: GS 2 – e-governance. GS 3 – Inclusive growth Relevance: Issues related to flooding in cities News- The article explains the Indian DPI and issues related to it. What are some facts about… Continue reading Pathways for digital inclusion<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[300,212,10500],"class_list":["post-254179","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-governance","tag-gs-paper-2","tag-indian-express","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/254179","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=254179"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/254179\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=254179"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=254179"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=254179"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}