What are the components of the Digital Public Infrastructure (DPI) framework in India, and how has it influenced the fintech sector?

i.         The DPI framework includes digital identity, digital payments, and digital data exchange layers.

ii.        These components have driven India's fintech revolution, providing access to banking services.

iii.       Nearly every adult can authenticate themselves remotely through Aadhar, enhancing digital transactions.

iv.       The efficient and affordable mobile connectivity has contributed to India's status as the third-largest fintech ecosystem globally.

Choose the correct options from above.

Solution

Explanation: "NPCI International Payments Limited (NIPL), a wholly-owned subsidiary of the National Payments Corporation of India (NPCI), has recently entered into a strategic partnership agreement with Al Etihad Payments (AEP) for the implementation of a Domestic Card Scheme (DCS) in the United Arab Emirates (UAE). This partnership aims to bring about a significant transformation in the UAE's payment landscape. AEP, an indirect subsidiary of the Central Bank of UAE (CBUAE), has joined hands with NIPL to build, implement, and operationalize the UAE's national domestic card scheme. The DCS in the UAE carries a multi-fold objective. Firstly, it intends to facilitate the exponential growth of e-commerce and digital transactions within the country. This is expected to boost financial inclusion by providing easy access to digital payment methods for a larger segment of the population. The initiative aligns perfectly with the UAE's digitization agenda, which seeks to position the nation as a leader in the global payments industry. NIPL brings a comprehensive DCS solution to the table, based on key principles such as sovereignty, speed to market, innovation, digitization, and strategic independence. The solution comprises a RuPay stack, which is an indigenous, highly secure, and widely accepted card payment network in India. RuPay cards are versatile, offering debit, credit, and prepaid propositions. Currently, over 750 million RuPay cards are in circulation in India, with more than 60% of total cards issued in the country being RuPay cards. In addition to the RuPay stack, NIPL offers value-added services, including robust fraud monitoring services and analytics. Furthermore, NIPL will collaborate with AEP in developing the operating regulations necessary for the smooth functioning of the domestic card scheme in the UAE. The success of RuPay and India's wider fintech ecosystem is closely tied to India's Digital Public Infrastructure (DPI). This framework encompasses digital identity, digital payments, and digital data exchange layers. It has facilitated remote authentication through the Aadhar system and made efficient and affordable mobile connectivity available to the majority of the adult population. As a result, India has emerged as the third-largest fintech ecosystem globally, witnessing a remarkable 367% growth in customers participating in digital transactions over the last five years, now boasting an active customer base exceeding 340 million."