For the longest time, questions have been raised about the business model for UPI and how the industry should charge for its services. The government has prohibited MDR on UPI transactions, but it should still be possible for us to develop a new revenue model.
Last year there was widespread support for India’s DPI approach—with countries around the world hailing its achievements, and looking to emulate them. Over the past few months, however, the voices of dissent have grown steadily louder. Rather than allow arguments against DPI to go unanswered, I thought it best to deal with them head-on.
2023 was the year in which DPI assumed its rightful place on the world stage. It was also the year in which artificial intelligence came into its own. There has never been a more interesting time to be engaged in technology policy.
To ensure equitable access to digital public infrastructure, it’s crucial to address the digital divide. This involves extending connectivity infrastructure globally, reimagining digital systems for offline accessibility, and enhancing digital literacy. Innovations like offline Aadhaar enrolment and QR-code-based services, along with user-friendly design, are key to making DPI inclusive and accessible to all, regardless of their technological proficiency.
Given the similarities between the digital infrastructure that both Brazil and India have built it makes sense that as the new President of the G20, Brazil can build on all the work that India did during its Presidency to raise global attention to the concept of digital public infrastructure.
Despite India’s success in pushing the DPI agenda during its Presidency of the G20 there have been some criticisms about the actual impact of its financial inclusion efforts. While there is no doubt that we are prone to embellishment, India’s achievements in the area are substantial. Criticisms about coercion are also unfounded given some level of market orchestration is necessary — especially in low and middle-income countries that are looking for accelerated development.
In an increasingly polarised world, the 2023 New Delhi Declaration at the Leaders Summit of the G20 was a diplomatic triumph. But as you read through the pages of the text it is striking how much it covers in terms of new technologies and their governance.
Rather than simply building DPI building blocks, countries that are looking to follow India’s DPI Approach should look to develop DPI solutions that leverage individual elements of the DPI stack in an interoperable manner.
India’s Pradhan Mantri Jan Dhan Yojana (PMJDY) has significantly increased bank account ownership since 2014, with 56% of these accounts owned by women, reducing the gender gap. However, most women use these accounts only for benefit transfers, not for savings or financial products. To enhance women’s financial engagement, promoting digital payments and designing services tailored to women’s needs, considering their unique challenges, is essential. Proper training and fostering a supportive ecosystem are crucial for genuine financial inclusion.
India’s digital public infrastructure has transformed daily life, with UPI processing billions of transactions monthly. However, global innovations, like mPESA in Kenya and DCash in the Eastern Caribbean, highlight the worldwide growth of DPI. At a recent knowledge-sharing event, global participants recognized India’s leadership in DPI and sought guidance on its design and governance. India’s experience positions it to guide other nations in developing robust digital ecosystems.
