[Abigail Aaronson]

DigiLocker services can greatly assist MSMEs in various ways. The recent budget announcement expanded DigiLocker’s scope, introducing two important updates. Firstly, DigiLocker will expand the documents available for individuals, facilitating fintech services and simplifying KYC. Secondly, an Entity DigiLocker will be established specifically for MSMEs, large businesses, and charitable trusts. This entity-based DigiLocker will enable secure storage and sharing of documents with authorities, regulators, banks, and other business entities.

DigiLocker, a digital document wallet initiative by the government, aims to enable paperless governance. It empowers individuals and businesses with easy access to digital documents and certificates. By making DigiLocker a part of the public digital infrastructure, fintech companies can reduce costs and enhance the ease of doing business. However, further work is needed to ensure document security and prevent unauthorized access or misuse.

These updates are expected to benefit MSMEs by simplifying the KYC process. This will lead to quicker access to finance, reduced KYC costs, improved efficiency, and increased services to underserved parts of the economy.

To leverage DigiLocker for your business, you can register and activate an account on the official website. You can also upload relevant documents following the provided instructions.