Budget 2023: What Is The New Expanded Scope Of Digilocker?
Budget 2023: On February 1, while presenting the Union Budget 2023 in February, Nirmala Sitha Raman The Finance Minister announced the expansion of the scope of documents in Digilocker to enable more fintech services to access and leverage the platform with the aim of enabling more fintech innovative services.
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— PIB India (@PIB_India) February 1, 2023
To enable more fintech services, scope of documents available on Digi Locker for individuals to be expanded, an entity DigiLocker will be set up for use by MSMEs, large businesses and charitable trusts for securely storing and sharing documents online
An entity of DigiLocker will be set up for use by MSMEs, where large businesses and charitable trusts can securely store and share documents online.
Due to the COVID-19 protocol, the Budget copies have been disseminated electronically this year with documents being uploaded on the government website as well as being made available on a special app developed for the same. Hence no document has been printed this year.
Let's know in detail about the new expanded scope of Digilocker here.
What is the DigiLocker?
- The DigiLocker was launched in July 2015 by PM Modi.
- It is the government's official online digital document storage facility.
- The platform has largely been accessible for individuals only as of now.
- According to the new initiative, digitized documents will be made obtainable to businesses.
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Digilocker: The Expanded Scope
- KYC process will be simplified by taking a risk-based approach.
- It is a one-stop solution for updating identity using Digilocker service and Aadhaar as foundational identity.
- PAN is to be used as a common identifier.
- Enterprise-level Digilockers will be introduced to MSMEs (micro small and medium businesses), trusts, and other entities.
- This will expand the scope of documents currently available in Digilocker.
- Adhar is the common identifier for digital systems
- More than 39,000 compliances are reduced for enhancing the ease of doing business.
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Finance Minister Nirmala Sitha Raman stated
“A one-stop solution for reconciliation & updating of identity and address of individuals maintained by various govt agencies, regulators and regulated entities will be established using DigiLocker service and Aadhaar as foundational identity."
She also said that to enable more Fintech innovative services, the scope of documents available in DigiLocker for individuals will be expanded.
She further added
"Fintech services in India have been facilitated by our digital public infrastructure including Aadhaar, PM Jan Dhan Yojana, Video KYC, India Stack and UPI. To enable more Fintech innovative services, the scope of documents available in DigiLocker for individuals will be expanded
“An Entity DigiLocker will be set up for use by MSMEs, large business and charitable trusts. This will be towards storing and sharing documents online securely, whenever needed, with various authorities, regulators, banks and other business entities."
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What is the difference between Interim Budget and Vote on Account?
Bottom Line
This means that Digilocker will be the one-stop KYC maintenance method for MSMEs.
It will allow companies to make changes to their important documents and that will be reflected in all their documents that are linked to Digilocker.
Digilocker and Aadhar will be used as a one-stop solution addressing KYC needs.
