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.

Global examples of DPI

• 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.

India’s Outcomes from DPI

• 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.