Aditi Joshi
| 102 views | 4 min read
Access to technology is revolutionizing the way individuals and communities interact with essential services. From accessing government schemes to managing financial transactions online, technology is bridging gaps that once seemed insurmountable. This shift not only enables communities in rural India, but also enhances efficiency and inclusivity across various sectors.
Along with the access to technology, what is making this growth in rural India possible? It is the country’s strong digital infrastructure or the Digital Public Infrastructure (DPI). DPI can be the way forward that can drive inclusive growth for countries around the world.
Here’s a look at how.
DPI is not a standalone technology but a pathway that brings technology to the people. DPI provides essential, society-wide, public and private services, and can play a critical role in accelerating this digital transformation in an inclusive way. This is as per the definition in the World Bank report, part of the G20 reports.
We can view DPI as a roadmap to pick the right mix of tools and technologies for a government's unique circumstances. It is enabling new ways of delivering services to the public, both for government and non-governmental entities like corporations and nonprofits.
A strong DPI has three foundational systems—identity, payments, and data exchange, which together can enable service delivery to reach the last time.
Identity - Having a proof of who you are - your legal identity plays a major role in guaranteeing access to government services and entitlements, especially for the vulnerable communities in India. It enables governments and government agencies to play an active role in the economy by ensuring access to credit.
Payments - We have seen digital payments revolutionize access to financial services. It has allowed millions of people, especially women, to conduct secure financial transactions without cash for the first time.
Data exchange - Data exchange system allows for more data sharing and integration between otherwise unconnected institutions. It benefits people by easing the process, while also helping individuals take more control over their data. For example, a medical history database shared among institutions can help a patient get more holistic treatment.
DPI offers robust solutions to enhance their digital infrastructure and drive inclusive growth. It acts as a foundation for a country's digital transformation and inclusive development. It allows people to open bank accounts and enables easy transfer of wages or entitlements. It also enables entrepreneurs at all levels to reach customers faster and most importantly, in times of crisis, it allows government aid to reach the most vulnerable communities quickly and efficiently. DPI allows for innovation and building tailored public service delivery packages based on the needs of the citizens of the country. Countries can thus reap long-term benefits if the leaders focus on solving problems for people and not specific technology. It helps build transparent, efficient and quick public service delivery systems for public welfare.
Micro enterprises have proved too costly for banks to service and are hence barred from credit. This has excluded the most deserving and smallest businesses and individuals from access to credit. UPI, Aadhaar and account aggregation is bringing down the cost, increasing more authorized institutions and making small value or short duration loans commercially viable.
Rang De which is a RBI-regulated peer-to-peer lending platform is also leading the way by tailoring credit solutions for micro-entrepreneurs in addition to farmers and artisans. These solutions build credit histories for thousands of individuals from underbanked communities in India.
In India, the government has led the building of ‘India Stack’ which comprises all the technologies required to operate an application, right from identity to payments and other services. This has helped build APIs (Application Program Interface) that have fast-tracked inclusive growth in the past few years. Some examples of the DPIs in India that have benefited the people in different ways are - Aadhar , DigiLocker , Unified Payments Interface (UPI) , UMANG, DIKSHA, Ayushman Bharat Health Account) and Open Network for Digital Commerce. There are continuous additions made to this by public and private players that are leading the way in making this country a fintech pioneer in its own way.
In conclusion, DPI isn't just another technology purchase for governments—it's a mindset shift. Governments need to transition from being implementers to enablers, using flexible building blocks for building future solutions. This requires vision, understanding of people's needs, and collaboration. Corporates nonprofits and also individuals must step up to create resilient systems and communities.
So while the world wraps its head around DPI, we at Rang De continue to connect rural entrepreneurs, farmers and artisans to accessible credit. You can be a part of this credit revolution and enable days of livelihoods for hundreds of individuals. Visit www.rangde.in to learn more!
