From airports to banking, why delaying tech reforms hurts everyone

From easier airport access to opening bank accounts-- slow tech adoption is holding back growth and a hassle-free ecosystem for citizens

India has been at the forefront of building digital public infrastructure for governance reforms. Foundational systems like Aadhaar and Unified Payments Interface (UPI) are horizontal in nature, enabling multiple applications. Aadhaar, for instance, not only offers a unique identity to every resident but also supports online authentication across services. Over time, services like e-KYC, e-Sign, and DigiLocker have been built on Aadhaar, simplifying tasks such as opening bank accounts, obtaining SIM cards, filing tax returns, and storing digital documents.

 

Yet, despite these advancements, India has often been slow to adopt these innovations. The delays have cost us efficiency, opportunity, and citizen convenience. Here are a few telling examples.

 

Aadhaar as KYC for banking: One of Aadhaar’s earliest envisioned uses was for know your customer (KYC) requirement for opening bank accounts. While discussions with the finance ministry and the Reserve Bank of India (RBI) began in 2010-11, it wasn’t until August 2013 that the RBI formally allowed Aadhaar-based KYC for banks.

 

The impact was transformative. Aadhaar e-KYC drastically reduced customer onboarding costs, making financial services viable for low-income individuals. As a result, financial inclusion surged, with 82 per cent of Indian adults now holding bank accounts. Had this reform come earlier, millions could have accessed financial services sooner.

 

Aadhaar for mobile SIMs: A similar delay occurred in telecom. Efforts to get the Department of Telecommunications (DoT) to accept Aadhaar for SIM issuance began in 2011-12. But vague “security concerns” held it back for over five years. Eventually, in 2016, Aadhaar was accepted for SIM verification. Ironically, the same agencies that once resisted Aadhaar later pushed to make it mandatory. As of early 2025, biometric verification using Aadhaar is being mandated for new SIM registrations.

 

Earlier adoption could have reduced fraud and improved telecom security much sooner.

 

Airport entry using Aadhaar: In 2014-15, while serving as secretary, Department of Electronics and Information Technology, I proposed using Aadhaar authentication for airport entry — enabling express lanes through fingerprint/one-time password (OTP) verification. Given the success of biometric attendance in government offices, this seemed feasible and secure.

 

Despite engaging with the Ministry of Civil Aviation and security agencies, the proposal was rejected due to unspecified security concerns. Eight years later, in December 2022, a similar idea surfaced as Digi Yatra — using facial authentication instead. The core idea remained the same, but the delay cost us years of enhanced passenger experience and security.

 

PM-WANI: A missed opportunity in public WiFi: The PM-WANI (WiFi Access Network Interface) initiative aimed to democratise internet access via public WiFi. Conceived by the Telecom Regulatory Authority of India (Trai) in 2015–16, the plan offered low-cost, sachet-sized data packs using an open and interoperable model. A successful pilot led to a formal recommendation, but the proposal stalled for three years, until the Prime Minister’s Office intervention led to Cabinet approval in December 2020.

 

Even after approval, implementation has been sluggish. Some argue that falling mobile data prices make PM-WANI less relevant, with no viable business case. But this view ignores the huge rise in data consumption. Many students from low-income homes rely on the internet for education, often needing video content. A well-executed PM-WANI network could offer affordable access and bridge the digital divide more effectively.

 

eRUPI: Underutilised potential: Launched on August 2, 2021 by the Prime Minister, eRUPI is a person- and purpose-specific digital voucher developed during the pandemic. Unlike traditional direct benefit transfers (DBT), eRUPI ensures funds are used only for their intended purpose.

 

Take the example of state-run bicycle schemes for schoolgirls. Governments either distribute bicycles or transfer funds, but both methods have drawbacks. With eRUPI, a digital voucher redeemable only at bicycle vendors, transparency and choice are ensured. Similarly, private companies can use eRUPI for corporate benefits or incentives.

 

Despite its potential, adoption remains slow. The National Payments Corporation of India (NPCI) has already integrated eRUPI into UPI apps, and startups are building user-friendly solutions. With scale, eRUPI could be as game-changing as UPI. Every delay slows that potential.

 

Digital health records: The Ayushman Bharat Digital Mission (ABDM), launched by the Prime Minister in September 2021, aims to build a robust digital health infrastructure for the country. At its core, the mission envisions a patient- and wellness-centric system that enables seamless digitisation and accessibility of health records, including diagnostic reports. By leveraging technology, ABDM has the potential to reduce health care costs for patients and make health services more affordable, efficient, and widely accessible. However, the mission’s transformative promise remains largely unrealised due to a lack of implementation momentum and the reluctance of private health care providers to facilitate the sharing of medical records — even when authorised by the patient. This resistance continues to hinder the full-scale adoption and impact of ABDM.

 

Conclusion: While India has made remarkable strides in developing population-scale digital public infrastructure, delays in adoption continue to hinder their full potential. Bureaucratic inertia, regulatory hesitancy, and resistance to change have often resulted in missed opportunities for efficiency and improved citizen experiences. As a nation, we must recognise that timely adoption of technology is crucial for building a cost-effective, citizen-friendly, and hassle-free ecosystem.

 

It’s time to shift gear and embrace these innovations faster. Technology waits for no one — and neither should governance.

The author is former CEO, National Health Authority. The views are personal