How India Stack Works

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How India Stack Works 


India Stack is a set of open APIs and digital public goods that aim to unlock the economic primitives of identity, data, and payments at a population scale. It is a foundational layer of digital infrastructure that enables governments, businesses, and individuals to interact and conduct transactions electronically.

The four core components of India Stack are:

  • Aadhaar: A unique digital identity for every resident of India.

  • Unified Payments Interface (UPI): A real-time interbank payment system.

  • Bank Accounts: A bank account for every Indian adult.

  • Mobile Phones: A mobile phone for every Indian.

These components work together to create a seamless and inclusive digital ecosystem. For example, an individual can use their Aadhaar number to open a bank account and then use UPI to make payments to and from their account using their mobile phone.

India Stack has had a significant impact on the Indian economy and society. It has helped to promote financial inclusion, reduce corruption, and improve the efficiency of government services. It has also enabled the growth of new industries and businesses.

Here are some examples of how India Stack is used today:

  • Financial inclusion: India Stack has helped to bring millions of Indians into the formal economy by giving them access to bank accounts and digital payments.

  • Government services: India Stack is used to deliver a wide range of government services online, such as income tax filing, passport applications, and ration distribution.

  • e-commerce: India Stack has enabled the growth of e-commerce in India by making it easy for people to pay for goods and services online.

  • Fintech: India Stack has fueled the growth of India's fintech sector by providing a platform for startups to develop new financial products and services.

India Stack is a unique and innovative example of digital infrastructure that is being used to transform the Indian economy and society. It is a model that other countries are increasingly looking to emulate.