Digital Public Infrastructure (DPI)

Context (PIB): India’s G20 Task Force released a report on Digital Public Infrastructure.

DPI is a technology-driven approach to achieve societal goals through a regulated ecosystem that combines public interest with competitive private innovation.
Connectivity infrastructure, such as building cell towers and laying underground internet cables, is essential for DPI but falls outside its specific definition.

Why countries adopt DPI?

DPI empowers individuals with economic mobility and safeguards key digital rights, such as control over their money and data.
DPI enables countries to leapfrog development stages, achieving significant economic growth quickly. For example, India achieved rapid financial inclusion through DPI in less than a decade.
DPI stimulates market innovation by reducing transaction costs, fostering competition through interoperability, and attracting private capital.
- Companies like PhonePe in India, a $12 billion fintech firm, benefited from DPI in payments.
DPI provides inclusive access to vulnerable groups like remote populations, women, marginalised communities, and small businesses, thereby reducing inter-group disparities such as gender gaps.
DPI’s flexibility supports resilience during crises. For instance, during COVID-19, countries used DPI for digital vaccination certificates and direct cash transfers, enhancing response capabilities.
Operates cost-effectively, leveraging public and private financing to sustain infrastructure development.
DPI offers nations a means to maintain control over critical national infrastructure, ensuring sovereignty and security in digital services.

Verifiable Identity and Registries: Estonia’s e-Residency Offers digital identity cards to non-residents, facilitating business registration and management online.
Data Sharing, Credentials, and Open Models: Canada’s SecureKey Concierge enables citizens to access online services securely using their verified banking credentials.
Signatures and Consent: E-signatures in countries like Estonia enable secure online transactions and document signing, enhancing user convenience and legal validity.
Payments: Australia’s New Payments Platform (NPP) enables instant bank transfers between individuals and businesses 24/7.

Unified Payments Interface (UPI): Enables instant digital payments via mobile across any bank account or app, handling over 10 billion transactions monthly.
Aadhaar Payment Bridge: Facilitates direct cash transfers of Rs. 3.81 lakh crore to beneficiaries’ bank accounts annually, enhancing financial inclusion.
Aadhaar & eKYC: Provides digital identity to over a billion adults with 33 billion authentications, facilitating 44.7 million new bank accounts and SIM card registrations.
Aadhaar Enabled Payments System (AEPS): Biometric-based cash withdrawals and deposits through agents, serving 150 million people in small towns where physical ATMs are scarce.
DigiLocker: Stores verifiable credentials for 211 million users, including identity documents, educational certificates, and vaccination records, enhancing digital document management.
Bharat Bill Payments System: APIs for bill fetch and payment processing over 23 million bills monthly through any app, simplifying utility payments.
FastTag: Streamlines toll and parking payments, improving efficiency and reducing traffic congestion.
Account Aggregator: Facilitates consented financial data sharing across sectors, benefiting 1.9 billion financial accounts to access credit and insurance services.
Public Tech Platform for Frictionless Credit: Protocols enabling lenders access to borrower information for seamless credit processing, promoting inclusive economic growth.