Budget 2023: Amid plans afoot to expand its scope, here are key features of DigiLocker

The Union Budget 2023 recently announced that the scope of documents which are available on DigiLocker will soon be expanded to enable more fintech innovative services.

The Union Finance Minister Nirmala Sitharaman also announced that DigiLocker and Aadhaar will be the foundational solution for updating of identity and address of individuals.

There will also be DigiLocker for MSMEs, large businesses and charitable trusts so that documents can be stored and shared online.

“To enable more fintech services, scope of documents available on DigiLocker for individuals to be expanded, an ‘Entity DigiLocker’ will be set up for use by MSMEs, large businesses & charitable trusts for securely storing and sharing documents online,” Nirmala Sitharaman had announced on Feb 1.

What is a DigiLocker?

It is government’s platform for issuance and verification of documents and certificates. It is available as a mobile application (app) on android and Apple store with more than 5 crore downloads.

The documents that can be saved and shared on this platform include Permanent Account Number (PAN). A number of banking and insurance organisations are connected to DigiLocker platform which include Bank of Maharashtra, Bank of India, Bajaj Allianz Life Insurance and Aditya Birla Housing Company, among others.

(Source: digilocker.gov.in)

How to use the platform

The process of downloading a document on Digilocker has three common steps. In the first step, one has to first register on the virtual platform. Once the registration is complete, one can go for verification.

The second step entails authentication wherein one is supposed to verify oneself. After the verification is complete, one can finally take the last step i.e., fetch the documents.

Key features

Amid an array of features, DigiLocker helps enhance ease of doing business by simplifying eKYC process.

With over 14 crore users and more than 560 crore documents, DigiLocker offers paperless solution to the users.

This enables consent-based document access to the users. Also, the fact that documents in the ‘issued document’ section of DigiLocker are legally valid as per IT (Information Technology) Act, 2000 makes the process authentic and worthwhile.

It is vital to note that DigiLocker is not only a platform to share financial documents but also the documents in various other categories such as universities, higher education boards, health institutions such as hospitals, transport bodies and others.