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The government on Wednesday announced to set up DigiLockers for the micro, small and medium enterprises (MSMEs), large businesses and charitable trusts.

Fintech services in India have already been facilitated by the digital public infrastructure including Aadhaar, PM Jan Dhan Yojana, Video KYC, India Stack and Unified Payments Interface (UPI).

"To enable more Fintech innovative services, the scope of documents available in DigiLocker for individuals will be expanded," said Finance Minister Nirmala Sitharaman.

"An Entity DigiLocker will be set up for use by MSMEs, large business and charitable trusts. This will be towards storing and sharing documents online securely, whenever needed, with various authorities, regulators, banks and other business entities," she said.

A one stop solution for reconciliation and updating of identity and address of individuals maintained by various government agencies, regulators and regulated entities will be established using DigiLocker service and Aadhaar as foundational identity, said the government.

"The introduction of Entity DigiLocker for business enterprises will facilitate online storing of documents which will accelerate the digital transformation of the country," said V. Srinivasan, Chairman, eMudhra.

DigiLocker is a flagship initiative of the Ministry of Electronics & IT (MeitY) under Digital India programme. It is a secure cloud based platform for storage, sharing and verification of documents and certificates.

Karan Desai, Founder at Interface Ventures, said that rolling out of a National Data Governance Policy will encourage R&D by using the Aadhaar and DigiLocker platforms to simplify individual address reconciliation and verification across all regulators.

"MSMEs will benefit from steps including continued reduction of unnecessary compliances to promote ease of doing business and additional infusion of 9,000 crores in the Credit Guarantee scheme from April 1, 2023, with reduction in cost of guarantee by 1 per cent," said Desai.