Union Budget 2023: SMEs Can Now Access More Documents Through DigiLocker; KYC-Related Processes Will Be More Streamlined

Nirmala Sitharaman, Finance Minister, has said that the government will broaden the range of papers accessible through DigiLocker.

For those who are unaware, the Ministry of Electronics and Information Technology introduced DigiLocker in 2015 as part of the Digital India effort. Users may keep and exchange significant government-verified papers digitally thanks to the safe software. In the corporate sector, the news of DigiLocker’s expansion immediately caused happiness.

“The Government’s ongoing endeavour to build a robust digital public infrastructure and improve existing services such as the DigiLocker will enable FinTechs to continue innovating financial products. The access to anonymised data under the National Data Governance Policy, the establishment of the National Financial Information registry and the new, simplified approach for KYC will revolutionize how financial services are delivered to millions of under-served customers” stated, Sashank Rishyasringa, Co-founder, axio.

There is also a greater focus on making the KYC process as swift and seamless as possible to foster a more vibrant digital economy. “The government has taken several key steps in building a more vibrant ecosystem by focusing on sectors which were previously underserved. The focus on reducing compliances, and hassles in running a business is specifically laudable,” mentioned, Pearl Agarwal, Founder and Managing Director, Eximius Ventures.

The move will help fintech startup across the country to broaden their services and cater a more seamless experience to the users. Public and private platforms can leverage the services offered by DigiLocker and innovate more user-friendly platform. Allowing the sharing of documents across various authorities, regulators, banks, and business entities will enable them to solve the problem of physical authentication of documents.