Imagine a
platform that would enable a lender to sanction a loan in seconds, based on
real-time data about borrowers. A platform that would allow every citizen to
store documents ranging from college certificates, driving licenses and land records
in a centralised Dropbox-like cloud. A platform that could instantly
authenticate every person no matter the location, based on her fingerprint or
iris. A platform that would allow digital money to move seamlessly from people
to businesses to governments, with near-zero charges.
India Stack is a set of open APIs and digital public goods
that aim to unlock these economic primitives at population scale, promoting
financial and social inclusion
Originally
set up to help India’s fledgeling software product startups share their best
practices on growth, iSpirt, which is a private non-profit organisation
(Section 8 company) has now “pivoted” to building and evangelising India Stack.
According
to iSpirt, India Stack would enable governments, businesses, startups, and
developers to create, provision or consume “presence-less, paperless and
cashless” service delivery.
Layers of India stack
The 4 major
layers of India Stack are:
1. Consent Layer
·
It is an open personal data store, owned by the Reserve Bank of India.
·
This framework allows you to access modern privacy data-sharing.
2.
Cashless Layer
·
It is an interoperable payment network.
·
NPCI owned this layer. It includes IMPS, AEPS, APB, and UPI.
·
It reduces the costs of digital financial transactions.
3.
Paperless Layer
·
This layer can store and redeem information.
·
It is owned by the Department of Electronics and Information Technology.
·
It includes e-Sign, e-KYC, and the Digital Locker. The 2 major
components of the paperless layer are Digital Locker and Digital
·
Signature.
4.
Presence-less Layer
·
This layer has open API access.
·
It includes the Mobile Aadhaar and Aadhaar card.
·
You can present ID cards for proof in case of an Aadhaar card.
Components of India Stack
Key
components of India Stack include:
·
Ayushman Bharat Digital Mission
·
CoWIN
·
Open Credit Enablement Network (OCEN)
·
Open Network for Digital Commerce
·
FASTag
Significance
It has
facilitated the creation of innovative solutions and startups that leverage
digital technology to address societal challenges and improve access to
services for all segments of the population.
·
Financial Inclusion: India Stack plays a crucial role in promoting financial inclusion
by providing digital platforms for banking, payments, and financial services.
It enables people who were previously excluded from formal financial systems to
access digital payment methods.
·
Access to Services: With India Stack, citizens can access a wide range of government
services, financial services, healthcare services, education resources, and
more through digital platforms, enhancing convenience and accessibility.
·
Entrepreneurship and Innovation: India Stack’s open APIs have spurred
innovation by allowing startups and businesses to build new services on top of
the existing infrastructure. This has led to the growth of
a vibrant tech ecosystem.
·
Reduced Corruption: By enabling direct benefit transfers and digital subsidies, India
Stack helps reduce leakages and corruption in the distribution of government
benefits and subsidies.
“Innovative
data-driven and behavioral risk management models can overcome barriers that
arise from lack of widespread and robust credit scoring of individuals.”
Recent announcement that France will soon start
using UPI for digital payment is just one of many recent examples where
countries are not only observing the advancements in India but are also
actively exploring avenues for collaboration
·
India has signed MoUs with several other nations including Papua
New Guinea, Armenia, Sierra Leone, Suriname, etc., to share India Stack.
·
Recently India signed a MoU with Trinidad and Tobago on sharing
India stacks.
Concerns
However,
it’s important to note that while India Stack offers significant benefits in
terms of efficiency and convenience, it also raises important concerns related
to data privacy, security, and digital inclusion.
Balancing
these considerations remains a key challenge as India continues its digital
journey.
·
Privacy and Data Security: The use of Aadhaar and digital identity
raises concerns about the security and privacy of citizens’ personal data.
There have been instances of data breaches and identity theft.
·
Exclusion and Accessibility: While India Stack aims to provide digital
services, there are concerns about excluding individuals who do not have access
to smartphones, the internet, or digital literacy. This can lead to a digital
divide.
·
Surveillance and Tracking: The collection of large amounts of data
through digital transactions and digital identities can raise concerns about
surveillance, tracking, and potential misuse of personal information.
·
Dependence on Technology: India Stack’s success depends on the
robustness of technology infrastructure. Technical glitches, outages, or
cyberattacks can disrupt services for millions of users.
·
Regulatory Challenges: The implementation of India Stack involves
navigating complex regulatory and legal frameworks. Balancing innovation with
adequate oversight is a challenge.
·
Consent and Opt-Out Mechanisms: Concerns exist regarding the ability to
provide informed consent and opt-out mechanisms for individuals who may not
fully understand the implications of their digital interactions.
·
iSpirt's IndiaStack role questioned: iSpirt played a significant role in architecting IndiaStack platforms,
but there is no public documentation to support this assertion. There's limited
accountability and transparency regarding iSpirt's contributions to IndiaStack
beyond PR and evangelism, with no direct evidence of the work done.
