The government and a digital think-tank called i-Spirit (comprising people who built the government's Aadhaar initiative) are working together on a technology called IndiaStack. This has the potential to bring down costs involved in financial transactions, make account opening with banks, mutual funds, etc, easy, and also make the process paperless and quicker. The technology platform also has the potential to bring down cash transactions in the economy.
- How it works
IndiaStack is structured as a four-layered pyramid, where all or a combination of these can work together.
Aadhaar-based digital identity: The first layer will provide a universal biometric digital identity, based on your Aadhaar details. This will enable online authentication through the fingerprint or iris......
- Makes your life easy
Consider the case of Saurabh Bhatia, a grocery store owner, who wants to open a bank account. He has been postponing this task, as he will need to visit a bank at a time when he is needed at his shop. He will also need to carry original and photocopies of documents to provide proof of identity and address, then wait for the bank to process his request. It will take him at least a couple of working days to get an operational account......
- Better financial products
However, it is not only Bhatia who will benefit from this open digital infrastructure called IndiaStack. The platform has the potential to transform the financial landscape by enabling product innovation, reducing customer acquisition and operating costs, and enabling larger sections to access financial products.....
- Send documents using DigiLocker for identity and address proof
- Get KYC done instantly online
- Documents can be signed online using digital signatures
- Once on-boarded, instantly transact using UPI
- Institutions pay a fraction of current cost they incur for customer acquisition
- Lower costs can be passed on to customers in form of lower commissions and processing fee
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