Digilocker transforms document management revolution

The 100-million mark for Digilocker users is a laudable milestone. But India still has a huge task ahead to bring the benefits of digital documents to more than a billion of its people

A hundred-million mark is worth celebrating even if it appears miniscule for a country with 1.3 billion citizens.  

More than 100 million citizens of India have now signed up and loaded important documents and certificates on the Digilocker platform. Seeking, saving and managing important documents of identity, tax and assets have been a bane for India for decades.

Now e-governance initiatives across national and regional departments have begun to show credible results. 

Launched by the Ministry of Electronics and Technology in 2016, the Digilocker platform had a slow start. Until 2020 the number of registered users on the platform were about 38 million. The number of users more than doubled in just one year to over 91 million by 2021. In March the number of users crossed the 100 million mark. These users have stored and saved about 5 billion documents on the platform. 

Each individual needs to keep a few essential documents for identity, education, tax, transactions and utility functions. Until recently, the best option was to save physical copies or access them on various portals. Digilocker allows over 550 types of documents issued by over 1700 institutions are connected to the Digilocker platform. 

Not just the government and citizens, the corporate world benefits from digital document storage, too. Employees — both current and potential — can offer certified documents to their organisations. For most companies, fake certificates and documents of employees are a nightmare. Getting Digilocker certified documents reduces the chances of fraud and fake papers. 

Many universities and schools have linked their systems to Digilocker. The documents can be pulled into the Digilocker platform directly from the archives of universities. Once certified, the document can be verified on the portal. This process of verification takes much longer when only physical prints of degree or professional certificates are presented. 
 

According to Mordor Intelligence, the global document management system market was valued at $5.51 billion in 2020, and is expected to reach $11.47 billion by 2026, and grow at a compounded annual growth rate of 13.05 per cent. 

From KYC documents to medical records, the digital document revolution is helping nearly all sectors and industries. The Asia Pacific region will see the highest growth in the world. “As unorganised content makes it difficult for larger organisations to extract business-related information and use available data, DMS proves very effective in overcoming these challenges,” according to Mordor Intelligence. “The document management systems market is ever-changing, driven by the need for increased efficiency in the workplace. The improving technologies and efficient execution of the document management systems are expected to gradually eliminate the traditional concept of paper files.”

Several types of organisations are now accepting Digilocker documents for various purposes. These include banking, finance and asset management entities such as NSDL, Zerodha, Edelweiss Broking, Bajaj Finserv and Life Insurance Corporation. Other entities include Godrej Properties, Mahindra & Mahindra, the German Consulate in Chennai and the Embassy of Hungary in Delhi. 

The digital document revolution will grow steadily as hundreds of millions of Indians join the online mainstream. The Digilocker app along with other e-governance platforms like Umang allow citizens to directly manage their documents and access critical information without the cost of going through intermediaries. 

The lockdown and the pandemic forced government departments to accelerate their digital services at state and city levels, too. Aware citizens and consumers are now demanding higher levels of access, facilities and security for their documents. 

The 100-million mark for Digilocker users is a laudable milestone. India still has a huge task ahead to bring the benefits of digital documents to more than a billion people.