Budget 2023 | DigiLocker 2.0 to simplify digital ID processes for all

The scope of DigiLocker will be expanded such that citizens will have to get their know-your-customer formalities done only once and it can then be used to verify other services as well, the union minister for electronics and information technology Ashwini Vaishnaw said.

Responding to a question from ET, Vaishnaw said that DigiLocker will now be expanded for KYC across various sectors. “So, for example, if you have already submitted documents for opening a bank account, then you do not have to repeat the process for insurance or a fresh home loan. That kind of facility is being created using DigiLocker,” Vaishnaw said, adding that “at least three countries” were on the verge of starting the implementation of the DigiLocker in their jurisdictions.

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“DigiLocker is a very effective tool… It is such an effective part of the Digital India vision of Prime Minister Narendra Modi.”

In her budget speech for 2023-24, Finance Minister Nirmala Sitharaman announced that the KYC process would be simplified by adopting a ‘risk-based’ approach rather than a ‘one-size-fits-all’ approach.

“A one-stop solution for reconciliation and updating of identity and address of individuals maintained by various government agencies, regulators and regulated entities will be established using DigiLocker service and Aadhaar as foundational identity,” Sitharaman said.

The concept of public-private partnership in public digital infrastructure, which saw successes in digital payments as well as health, will also be replicated in agriculture, Vaishnaw said.Budget 2023: extended tax holiday will apply to less than 1% Indian startups, say experts

The non-personal data governance framework, announced by finance minister Sitharaman during her FY24 budget speech, will help to leverage non-personal government data to deliver better services to citizens, he said.

“For example, we have weather and climate data sets going back 20-25 years. So, can these be used to make better and more authentic climate predictions for farmers? That is the thought process which we have used so that much such non-personal government data, by the use of artificial intelligence or other technologies, can be used,” Vaishnaw said.

Also read | Boost for fintech innovation: Govt to expand scope of Digilocker, set up AI centers, streamline KYC, says FM

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