04 OCT,2023 | MEDC
Digital public infrastructure (DPI) is a digital network enabling nations to safely and efficiently deliver economic opportunities and social services to all their residents. DPI can be compared to roads and highways in the physical realm, which form a network connecting people all over the country and providing access to a range of goods and services. DPI allows people to open bank accounts and conduct financial transactions faster and more efficiently, especially during emergencies like the (recently witnessed) pandemic. It assists socioeconomic growth by boosting institutional capacity.
Individuals benefit from it because they can safely and cheaply establish their identity to benefit from public and private sector services, receive wages, pay bills, and conduct financial transactions, regardless of their position in society and place of residence. India has one of the finest DPIs in the world in the form of the Aadhaar Card. Over time, it is helping to create an inclusive society and a competitive economy.
Aadhaar is hailed globally as a success in biometric identification to enable effective policy action in India. Like any other technological tool, it has its pros and cons. Some media reports have pointed to possible starvation deaths in rural India after rations were denied to those who were unable to identify themselves digitally. While the authenticity of such reports cannot always be guaranteed, it is obvious that over-reliance on technology can sometimes lead to undesirable outcomes.
We should also not overlook the danger of Aadhaar’s massive trove of data, with its matrix of links to other aspects of the private information of the public, falling into the wrong hands. But even here, credit should be given to the government, in that, a masked version of Aadhaar providing only limited information can be used at every place that accepts Aadhaar for documentary proof. It is only access to government benefits and schemes that require the beneficiary to provide the complete Aadhaar details.
Despite Aadhaar’s several advantages, it is worth in fortifying it further, by adopting decentralized and hierarchical mechanisms that potentially limit the damage caused by any single hack into the system. Whether the existing architectural setup is enough for that or a new one needs to be designed for it, can be decided only by experts. With rising online concerns, the theoretical vulnerability of Aadhaar remains a real risk to public safety and wellbeing.
Aadhaar is a classic example of a DPI designed to provide Indian residents an inalienable digital identify to ensure that welfare benefits reach the target audience without any transmission losses. To that end, it has succeeded admirably. Nearly 1.4 billion unique Aadhaar IDs now exist. They offer us a DPI foundation for realizing various measures of financial inclusion. Aadhaar – like any DPI – is not perfect. But it has clearly and speedily helped the marginalized sections of our society by effectively delivering money transfers to those needing them most in times of emergencies.
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Interactive Meeting with Mr. Jaykumar Rawal Hon'ble Minister for Tourism & Employment Guarantee Scheme Govt. of Maharashtra