Boost for fintech innovation: Govt to expand scope of Digilocker, set up AI centers, streamline KYC, says FM
Feb 1, 2023
Synopsis
Sitharaman said a one-stop solution would be introduced for reconciliation and updating of identity and address of individuals maintained by various government agencies, regulators and regulated entities will be established using DigiLocker and Aadhaar.
In what will facilitate innovative fintech services, the government is expanding the scope of Digilocker to allow more documents to be made available for individuals, micro-small and medium enterprises and charitable orgs, finance minister Nirmala Sitharaman said while presenting the Union Budget 2023-24.
"The financial sector regulators will also be encouraged to have a KYC system fully amenable to meet the needs of digital media," she said while delivering her Budget speech on Wednesday.
In line with this, Sitharaman said a one-stop solution would be introduced for reconciliation and updating of identity and address of individuals maintained by various government agencies, regulators and regulated entities will be established using DigiLocker and Aadhaar.
She spoke of the National Data Governance Policy that will bring in innovation and research by startups and academia. Sitharaman said that this will enable access to anonymized data.
In addition, she said the KYC process would be simplified and a risk based approach would replace a one-size-fits-all approach.
"Three Centers of Excellence for artificial intelligence will be set up in educational institutions and leading industry players will partner in conducting interdisciplinary research." "(The centres will be) for realizing the vision of Make AI in India and Make AI work for India," she said.
These centres would focus on developing cutting edge applications and scalable problem solutions in the areas of agriculture and sustainable cities and will galvanize an effective AI ecosystem.
Further, the Finance Minister announced an agriculture accelerator fund in a bid to promote agriculture among youth. She said this fund would be set up to encourage agri startups by young entrepreneurs.
"A digital public infra for agriculture will be built as an open-source, interoperable public good. This will enable inclusive farmer centric solutions through relevant information services of planning and health, improved access to farm inputs, credit and insurance help for crop estimation, market intelligence and support for growth of agri tech industry, and startups," she said.
Sitharaman said the government's vision for the 'Amrit Kaal' includes a technology-driven and knowledge-based economy, with strong public finances and a robust financial sector.
"To achieve this “janbhagidari” through “sabka saath, sabka prayaas” is essential,” she added. As part of the government's continued focus on the tech sector, Sitharaman said a series of measures were being introduced to unleash the potential of the economy.
[The Economic Times]
