How the Introduction Of Entity DigiLocker Will Benefit MSMEs, Startups
In line with the Digital India Programme, DigiLocker was launched in 2015 as an initiative under MeitY, to enable individuals to securely store documents and certificates on a cloud-based platform and use it for sharing and verification purposes. Over the last few years, the platform has become popular among users. The total registered user base has grown from about 1.2 million in 2016 to 152.6 million presently, according to statistics published on its official website. Till now, the platform was limited only for personal use of the citizens.
In the recent Union Budget 2023-24, the government announced expanding the purview of DigiLocker and introducing Entity DigiLocker for large, medium and small business entities. MSMEs and start-ups are the backbone of any economy, as they create jobs and contribute significantly to economic growth. However, these organisations frequently face problems with document management, storage, and sharing. With the introduction of Entity DigiLocker, MSMEs and startups can overcome these challenges and reap numerous benefits. The Government has been announcing several initiatives for start-ups and MSMEs that have encouraged the players to work towards technology-driven and digital-backed solutions. Furthermore, In line with its focus to promote digitisation, the Government has expanded the scope of DigiLocker to include its use cases for the industry and add-on functionalities like one-time KYC process for the ease of public services.
Here are the potential benefits of Entity DigiLockers for MSMEs and start-ups:
Secure Storage and Access to Documents: Secure document storage is a significant benefit of Entity DigiLocker for MSMEs and start-ups. The platform enables businesses to securely store important documents, such as certificates, licenses, permits, and other vital documents, in a digital locker. Physical storage, which can be costly, time-consuming, and prone to damage or loss, is no longer required. Furthermore, Entity DigiLocker ensures the safety and security of stored documents. To protect the documents from unauthorised access or tampering, the platform employs advanced encryption technology and multi-factor authentication. As a result, businesses can access their documents at any time, from any location, without fear of security risks.
Easy and Efficient Document Sharing: Another significant advantage of Entity DigiLocker for MSMEs and start-ups is the ease and efficiency with which documents can be shared. Businesses can use the platform to securely share digital documents with other entities, such as government agencies, customers, suppliers, and other stakeholders. Businesses can benefit from this Seamless Integration with Other Platforms: Entity DigiLocker can also help MSMEs and start-ups Improved Compliance and Governance: Finally, Entity DigiLocker can help MSMEs and start-ups improve compliance and governance. The platform enables businesses to centrally store and manage compliance-related documents, such as tax returns, financial statements, and audit reports, in a secure digital locker. This can assist businesses in meeting regulatory requirements, avoiding penalties and fines, and improving governance practices. Furthermore, Entity DigiLocker allows government agencies to access businesses’ compliance-related documents easily and quickly, improving the efficiency and effectiveness of regulatory oversight. This can assist businesses in developing a positive reputation and trust among regulators, investors, and customers, which can have long-term benefits.
To summarise, the evolution of DigiLocker can benefit MSMEs and start-ups in many ways. The platform can provide secure document storage and access, simple and efficient document sharing, seamless integration with other platforms, and improved compliance and governance. These advantages can help businesses save time, cut costs, and improve operational efficiency. As more MSMEs and start-ups adopt Entity DigiLocker, it is expected to become an integral part of India’s digital ecosystem.