Decoding Budget 2022-23: The Digital Push | Gist of Rajya Sabha TV / RSTV (now Sansad TV) - UPSC PDF Download

Introduction

• A digital push The Ministry of Electronics and Information Technology's expenditure on the Digital India programme in the 2022–23 budget increased by 67.13%.
•  The budget allotted for this programme this year is 10,676.18 crores, an increase from 6,388 crores the year before. 
• The Finance Minister also suggested introducing the Digital Rupee, which will be issued by the Reserve Bank of India and will be based on blockchain and other technologies, in her statement regarding the budget.
• The government also intends to establish 75 digital banking units by Scheduled Commercial Banks in 75 districts across the nation in an effort to ensure that the advantages of digital banking are accessible to everyone in a user-friendly way. 
• In India, a digital university will be established to give students access to top-notch instruction right at their doorstep during the academic disruption brought on by the coronavirus outbreak.
• Additionally, in order to allow the development of 5G mobile services by commercial telecom carriers during FY 2022–2023, the government would undertake the necessary spectrum auctions in 2022.

Hurdles creating by Digital Solutions in real world

• Digital “solutions” create additional bureaucracy for all sick persons in search of these services without disciplining the culprits.
• Along with paper work, patients will have to navigate digi-work. Platform- and app-based solutions can exclude the poor entirely, or squeeze their access to scarce health services further.
• In other spheres (e.g., vaccination) too, digital technologies are creating extra hurdles.
• The use of CoWIN to book a slot makes it that much harder for those without phones, computers and the Internet.
• There are reports of techies hogging slots, because they know how to “work” the app. The website is only available in English.

Lack a data privacy law in India: will create chaos: Online sharks

• If the epidemic is being utilised to build a foundation for future data exploitation, that is equally concerning.
• When its benefits cannot be effectively discussed due to the epidemic, the digital health ID initiative is being promoted.
• The alleged advantages include interoperable and electronic health records. By decentralising digital storage (for example, on smart cards), as France and Taiwan have done, interoperability for patients can be achieved (i.e., you don't have to carry your x-rays, previous medications, and investigations).
• The Indian government, however, is determined to build a centralised database. Given the absence of a data privacy regulation in India, it is quite conceivable that our health records would be used against us without our knowledge or consent by private parties (e.g., private insurance companies may use it to deny poor people an insurance policy or charge a higher premium).
• Concerns exist that the government may be utilising the immunisation campaign to fill the digital health ID database (for instance, when people use Aadhaar to register on CoWIN).

Challenges of digital financial inclusion in India

• Digital financial services (DFS) lies at the heart of financial inclusion in India.
• Despite the government’s efforts to create interconnected digital infrastructure, the adoption of DFS in rural areas is marred by digital illiteracy, which has a direct bearing on the acceptance of digital products.
• The lack of trust in technology, inability to use smartphones and poor network connectivity restrict digital transactions and discourage people with low digital proficiency from using e-banking services.
• As a result, cash is still the preferred mode of payment in rural India. Financial inclusion does not depend only on the digital capabilities of rural customers, but also on the ease with which they can carry out transactions online or on their phones.
• The absence of financial products and services suited to the rural masses remains a challenge in digital financial inclusion.
• Products have to be designed in a way that they are both easy to understand and operate.
• Language is another factor. Banks and fintechs must necessarily integrate local languages into their products so that users have little trouble accessing them.

Means of accelerating digital financial inclusion in India

• Acceleration of digital financial inclusion for underserved sections of Indian society.
• Enabling SMEs to ‘get paid, get capital and get digital’ and access customers, and ensure their continued resilience.
• Policy and technological interventions to foster trust and increase cyber resilience.
• Unlocking the promise of digitization in India’s agriculture sector.
• Multilingual options will also help develop a more inclusive model. Public and private entities can support local innovators who are more clued into regional demands and collaborate with them on products that suit local needs.
• For example, the lack of documents has been the biggest deterrent in weaning rural customers away from traditional banking services. How
• ever, AePS (Aadhaar-enabled Payment System) helped address this issue.
• To make city transit seamlessly accessible to all with minimal crowding and queues, leveraging existing smartphones and contactless cards, and aim for an inclusive, interoperable, and fully open system such as that of the London ‘Tube’.

Conclusion

• India is celebrating Azadi ka Amrit Mahotsavand it has entered into Amrit Kaal, the 25-year-long leadup to India@100, the government aims to attain the vision of Prime Minister outlined in his Independence Day address.
• India’s economic growth in the current year is estimated to be 9.2 per cent, highest among all large economies.
• The overall, sharp rebound and recovery of the economy from the adverse effects of the pandemic is reflective of our country’s strong resilience.