Demand for digital public infrastructure that allows easy and secure data exchange between various agencies
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How many times have you photocopied documents like your birth certificate, citizenship, educational certificate, driving license, etc.? Or how many times have you given these details to which agencies? It's hard to keep track of it.
To obtain a certificate from a university, the student must submit a photocopy of the academic certificate, registration number, etc. issued by the university itself to the university. When parents go to the ward office to register their children's births, they are forced to submit a photocopy of the marriage registration certificate issued by the ward office itself. When they go to the bank to take a loan, citizens are asked to provide a copy of the legal documents that are already safe with the Land Management and Records Department.
To address this problem, there is a demand for a digital public infrastructure (DPI) that allows easy and secure data exchange between various agencies. Since citizen data is scattered across government agencies, experts have been pointing out the need for a data exchange platform so that one agency can receive data from another agency.
‘Such a platform must necessarily be based on the consent or permission of the citizen,’ says Sanjeev Subba, an expert in the financial-technology sector, ‘For that, we need a data exchange platform with a strong legal system to protect the data and rights of citizens, like the DPDP Act of India.’
The e-Governance Board has stated that it has initiated a detailed study process to develop a national ‘Data Exchange Platform’. The study process has been initiated with the technical assistance of the Foreign, Commonwealth and Development Office (FCDO) of the British Embassy, said Dipesh Bista, Chief Executive Officer of the Board. It is claimed that this study will prepare a roadmap for digital transformation in line with the goals of the Digital Nepal Framework 2.0, the 16th Plan and the UK government’s Science and Technology Framework and Industrial Strategy: Digital and Technological Sector Plan.
Various ministries and agencies in Nepal are running separate information technology systems, which leads to duplication in data collection and delays in service delivery, said Bista, the head of the board. The study will analyze at least three successful international practices and recommend the most suitable option for Nepal. About a month ago, the FCDO had selected two Nepali experts, including a consulting firm, Delberg Advisors, for the study.
‘The biggest irony of our digital system today is that institutions issue certificates themselves and then ask for photocopies of them themselves,’ said Bista, the head of the board. ‘The citizenship granting agency itself asks for a photocopy of the citizenship. When you go to get a birth certificate, the ward asks for a marriage registration, while the marriage registration is done by the ward. The court asks for a copy of its own judgment from the service recipient. The only way to eliminate all these problems is a data exchange platform that can transfer data between agencies.’ When the digital systems of various agencies are interconnected, citizens do not have to run around carrying their documents, the service becomes automatic and faster.
The board claims that the study will conduct a detailed analysis of the current internet bandwidth, data center capacity, cybersecurity challenges, and legal hurdles. The study, which began on December 15, has been scheduled to be completed and the report submitted by March 31, 2026. The TOR states that the study should also submit a detailed action plan to operate a pilot project by integrating two to three major government services as a model. It has been said that a 'digital consent' will be provided in the system to protect data privacy.
Although the national identity card and digital payment system have been developed among the basic digital public infrastructures in Nepal, the infrastructure for data exchange and citizen consent (consent) has yet to be developed, said Subba, an expert in financial technology. He suggests that not only consultants should be involved in these infrastructure projects, but a high-level task force should be formed in collaboration with the private and public sectors.
Without going too far, Subba said that policy and structural initiatives related to digital public infrastructure can be taken in Nepal based on the experience, expertise and practices of neighboring India. Stating that the role of the Good Governance Board will be important in this, he emphasized that pure technocrats should lead such a digital campaign and that the bureaucracy should also develop the capacity accordingly.
What is a data exchange platform?
It is a modern digital infrastructure that helps in securely and easily exchanging data (identity cards, educational certificates, health details, biometrics and other personal details) that are stored separately in various government and private bodies. Financial technology expert Subba says that this platform has a system to ensure interconnection or interoperability between the bodies. This platform is considered a major pillar of digital public infrastructure.
The main objective of this platform is to make service delivery based on data rather than certificates, says Bista, the head of the board. Instead of citizens submitting a physical certificate or its photocopy to avail a service, the concerned agency verifies the data through a data exchange system.
Although citizens' birth registration, tax, property and educational details are available digitally in various agencies in Nepal, they are scattered. This platform connects these scattered data. When one agency needs it, it can directly verify or obtain data from another agency. For example, if a bank needs land revenue data for loan disbursement, it can be obtained securely through this platform.
‘This does not mean that data will be exchanged only between government agencies, but also between government-government, private-private and government-private agencies in a secure, regulated and reliable manner,’ said Bista. ‘When entities like banks, insurance, telecommunications, hospitals, educational institutions are connected to the state data exchange system, the obligation of citizens to provide the same information repeatedly is eliminated.’
While exchanging data, the ‘consent’ or permission of the concerned person must be obtained keeping in mind the privacy and security of the citizen. Subba argues that a strong legal system is needed to protect the data of citizens for this.
In order to protect the digital privacy of Indian citizens and regulate the use of personal data, the Digital Personal Data Protection (DPDP) Act, enacted in 2023, has made it mandatory for any organization or platform (data fiduciary) that collects data to keep the data safe, delete the data after the purpose is fulfilled, and inform the Data Protection Board in case of a breach. It is stated that if the data fiduciary is found to be unable to keep the data secure or in cases of violation of the law, it will be fined between 500 million and 250 million Indian rupees.
