The IndiaStack Framework

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Typically, when we think of government-run initiatives in India, a certain image comes to mind – one that leaves a lot to be desired. But, India is changing. And, changing fast. Yes, most of us know about initiatives like Aadhaar. But, that’s not all there is to it.

A few months ago, I wrote about India’s Digital Divide in a post that covered my visit to some Community Information Resource Centers (CIRCs) that were empanelled with the National Digital Literacy Mission. In it, I captured my experience of interacting with the Digital Empowerment Foundation (DEFIndia.org), and with the fine folks that work at the grassroot level, ensuring that underprivileged communities in semi-urban and rural India get access to Information Technology and to the essentials skills needed to make it work.

As it turns out, there is lot more where that came from. While leading dailies are busy covering Karan Johar’s adoption on their front pages, the government – yes, the government! – has been quietly working on a digital framework over the past several years, to enable a variety of “digital services” for its citizens.

The “IndiaStack“, as it is now known, is a collection of APIs that “allows governments, businesses, startups and developers to utilise a unique digital Infrastructure to solve problems towards presence-less, paperless, and cashless service delivery”. The seeds were sown way back in 2009 with the creation of UIDAI (Aadhaar), but the form it takes today is a robust, interoperable framework that works across devices and service providers. The IndiaStack APIs include Aadhaar, eSign, eKYC, Digital Locker, Unified Payment Interface and a host of other services ranging from Electronic Toll Collection to Bharat Bill Payment System – all designed to make it easier for the common man to go about their business. It even includes a specification for Electronic Consent that puts the user at the center of the data flow as well as content flow. Imagine, a government initiative doing all this!

The benefits of adopting such a framework are immense for the urban as well as rural masses. To take an example, a large bank can use a combination of Aadhaar + eKYC + eSign + Digital Locker to reduce Customer Onboarding time from days to hours, thereby reducing drop-offs, minimizing branch operation costs and practically eliminating the need for a backoffice. Reliance Jio used such a setup recently to onboard 100 Mn+ customers in less than 3 months, with less than 10 minutes per customer (vs 1 day or more for other telcos), and at a cost of less than Rs. 3 per new customer (vs Rs. 40 or more for other telcos). “Walk Out Working” is the new benchmark for the user journey, and it’s great news for all customers.

The technology is not just for the mass affluent customers in Top 10 metros, though. As more and more service providers build services around these APIs, the unbanked and underserved communities of India will be able to use elements of the IndiaStack to push & pull payments (UPI), share their own data (e.g. prepaid recharge history) with relevant entities, and access lending credit (e.g. a one-day or one-month loan) that was unavailable to them until now.

Aadhaar is not just another identity card – it offers a platform that can verify more than 100 Mn transactions a day, in real-time. UPI is not just a fun way to build a virtual payment address – it can enable push/pull transactions from any stored value account to any other store value account. And, Digital Locker is not just another storage service – it is a full-fledged data exchange platform to offer secure access to users in a multi-provider ecosystem. Finally, many of these tools work across devices, not just on smartphones- making them available to the audiences they were designed for.

If understood correctly, and used efficiently, this digital framework has the power to transform lives at the grassroot level, bringing hundreds of millions of people within the ecosystem, and offering them the tools they need to improve their socio-economic reality. And, the technology is available today, in the form of interoperable, scalable APIs, ready to plug-and-play.

After all, India is more than a tony suburb in Mumbai or a startup hotspot in Koramangala. India does not always speak English or get 24×7 electricity. But, India is eager to learn… hungry to grow. And thankfully, these new tools are a step in the right direction, in making India data-rich and well-connected.

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