By 2017-end, our digital commerce will become a $1-trn economy: IT Minister

Interview with Ravi Shankar Prasad

From revisiting the Information Technology Act to reinforcing the country's cyber security, law and IT minister Ravi Shankar Prasad has been at the centre of the surge in digital commerce after demonetisation of high currency notes on November 8. Edited excerpts of a conversation with Karan Choudhury on this and what's ahead.

What policies are you formulating around e-payments and how would they shape up this year? 
 

On this, transparency is built in the system. I foresee India to become a big base of the digital payments eco-system  in the world. I have already told the secretary, IT, to revisit the IT Act, in consultation with the ministries of home and commerce.

What about security around e-payments?

We are taking a whole lot of initiatives. We have set up a digital payment segment in CERT-In (Indian Computer Emergency Response Team), we have issued advisories on how merchants and bankers need to conduct themselves. We have toldbanks that if they see any unusual movement on their payments system, they should report to us immediately. Drills are being conducted, security audits are being done.

Who are the people behind the BHIM app (the Centre's new digital payments application)? How was it worked out?

NPCI (National Payments Corporation of India), emerging as a very good body, and we work in coordination with them. Also, technological inputs were taken. It is all a collective effort. Nandan Nilekani (former head of the Unique Identification Authority) was involved. Five million people have already downloaded it. I see a lot of innovative start-ups coming with new digital payment methods. It is going to be a game changer in terms of creativity and digital reach; also in terms of employment generation.

Do you think BHIM can be the top digital payment app in India? Could it take over the popular apps?

Yes, it will, and I am also waiting with excitement for the Aadhaar Payment Bridge System (ABPS); it would be the easiest way to make payments. I am not going to comment on them taking over other apps -- I'd encourage good competition.

The government is working a lot on re-monetisation. How has the shift been towards digital payments?

When we say digital payments, we do not say cashless; we say less-cash. Once digital payments acquire momentum, this is going to scale new heights. We need to trust the innovative spirit of Indians. All the money which has come into the banks does not necessarily become white. They have to explain the source, whether they have paid tax or not.

On integration of digital payments and digitisation, what more will we see on the government service front?

All departments would become digital; payments would happen electronically. We do not have any deadlines or targets but we want to get people involved.

How will you solve the problem of data connectivity?

There is no problem. I want fair competition; let the best provider have the widest reach. I see a lot of ideas and new products coming for digital payments. I had a meeting with the telecom companies and they have assured me that they'd render full cooperation. The more digital payments are undertaken, the more it is beneficial for them.

On cyber security, what steps have been taken?

A digital payments division was established on December 13. We have a cyber action response team, advisories have been given to all merchants and banks, security audits of UPI (United Payments Interface) and USSD (technology to snd text between a mobile phone and an application program) has been done. We are open to the idea of more guidelines to reinforce the security architecture. We have to work as a team -- government, IT ministry, payment infrastructure. One should not be unnecessarily panicky about it.

What support can be provided (to Indian companies) at a time when there is an increasing trend of protectionism and anti-globalisation in the US and UK?

Indian IT products are present in 200 cities of 80 countries. They are giving huge employment in the US, billions of dollars in taxes and achieved global benchmarks. If something more comes, we will look into it, once the (Trump) presidency takes over.

What all would be done by the end of 2017? What ground-level digitisation would happen by then?

By the end of 2017, India would be different digital country. Our digital commerce will become a $1 trillion economy. That includes communication, electronics manufacturing, delivery of services. As many as 42 mobile manufacturing units have come in India and about 30 ancillary product makers. All this would become an irreversible process.

In 2017, we would push electronics manufacturing in a big way, to encourage the digital movement, to make Digital India a reality.