Policy Wrap: ONDC aims to set foot into financial services, UPI records 9.96 billion transactions in July, and more

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ONDC

ONDC aims to set foot into financial services with credit, insurance and mutual fund related products and services

According to T Koshy, the Open Network for Digital Commerce’s (ONDC’s) Chief Executive Officer (CEO), ONDC intends to offer financial services, such as credit and insurance products, to clients over the next months.

By the end of this year, ONDC hopes to execute 1 lakh non-mobility orders and a similar number of mobility transactions each day.

The goal is to begin with financial items in the upcoming months, such as credit, insurance, mutual funds, and anything else that can be documented, with a first export demonstration by September.

T Koshy stressed that the main goal of ONDC is to change the e-commerce environment in India. He is a firm believer in MSMEs' crucial role in determining the direction of the Indian economy. Any firm must comprehend consumer psychology and cognitive processes in order to make better selections in the future, he further stated.

INDIAN ECONOMY

UPI records 9.96 billion transactions in July, up by 6.6% compared to last month

Data from the National Payments Corporation of India (NPCI) shows that the instant payment system Unified Payments Interface (UPI) recorded 9.96 billion transactions in July, with a total value of Rs 15.34 lakh crore.

This is an increase of 6.6% in UPI transactions from 9.34 billion in June. The number of transactions increased by 4% from Rs 14.75 lakh crore within the same time period.

By 2026–2027, UPI transactions—which make up 90% of India's retail digital payments—are predicted to exceed 1 billion per day.

The government has been trying to take UPI to other countries for cross-border transactions, with France being the latest to be added to the list.

In terms of transaction volume, PhonePe holds a 47% market share in the UPI race, followed by Google Pay at 35% and Paytm at 13%.

Semiconductor production is an important piece in the case for Make in India, make for the world

The goal of India's semiconductor mission, according to External Affairs Minister Shri S. Jaishankar, is to help meet both home and international demand for reliable production.

The minister claimed that the semiconductor mission "is truly a powerful case for make in India and make for the world".

He warned the senior executives of the biggest semiconductor companies in the world that their choices and interactions could have an impact on the world economy that goes far beyond their immediate business decisions.

The cause will benefit from India and the US's expanding critical technological collaboration as well as their memorandum of understanding on joint innovation and supply chain for semiconductors.

He also highlighted India's sharp focus in the technology domain.

DATA PRIVACY & CYBERSECURITY

Over 1 lakh cyber security incidents recorded in government organisations this year

Up until June of this year, government entities experienced over 1,12,474 cyber security events, while financial institutions experienced over four lakh instances, according to data given to the Lok Sabha on Wednesday.

Cyber-attacks present a threat to the confidentiality, integrity, and availability of data and services, which may have a direct or indirect impact on the organisation, according to Ashwini Vaishnaw, minister for electronics and IT. This is because cyberspace and digital infrastructure are being used more frequently for businesses and services and technological innovation. Such impact is unique to the attacked entity and depends on the degree to which such attacks have an influence on its data, assets, and services, he added.

The number of cybersecurity incidents in India have been on the upswing over the last few years, with 48285, 192439 incidents related to government organisations or systems in 2021 and 2022, respectively.

German data watchdog probing Worldcoin crypto project due to privacy concerns

Since late last year, a German privacy watchdog has been looking into OpenAI CEO Sam Altman's Worldcoin project because of concerns regarding its extensive processing of sensitive biometric data.

As part of a process to establish a new identity and financial network, Worldcoin asks users to submit iris scans in exchange for a digital ID and, in some countries, free bitcoin.

Worldcoin is being investigated by the Bavarian State Office for Data Protection Supervision since November 2022 due to worries that the project aims to process "sensitive data at a very large scale" with modern technology.

This poses a variety of issues, including the question of whether users have expressly consented to the use of their extremely private biometric data on the basis of "sufficient and clear" information.

According to Worldcoin, 2.1 million people have registered, mainly during a trial period over the last two years.

The widespread collecting and storage of biometric data has long been a source of worry for privacy advocates since it could lead to increased monitoring or the targeting of particular demographic groups.

Many European regulatory bodies are interested in Worldcoin and have requested for more details.

On Friday, France's privacy watchdog stated that Worldcoin's data collecting "seems questionable" in terms of legality.

The data regulator in Britain has also indicated that it will look into the initiative closely.

AI

Number of Metaverse users to surpass 600 million by 2026 due to generative AI, anticipated to grow by 40% year on year in India

According to a report from the cryptocurrency tracking website BanklessTimes, the surge of generative artificial intelligence (AI) will cause the number of Metaverse users to surpass 600 million by 2026.

Over 300 million people are currently active users of Metaverse video games and virtual world platforms, the survey claims.

Because of its astonishing powers to independently create material, graphics, sounds, and even entire virtual worlds, generative AI has recently attracted a lot of interest.

The report also noted that the fusion of generative AI and the Metaverse has the potential to revolutionise a wide range of sectors.

As more users swarm to the Metaverse, traditional gaming, for instance, is poised to develop into more open-ended, player-driven experiences. In-game digital assets with real-world value might be created and traded in entire virtual economies.

The market opportunity for Metaverse and Web3 in India, meanwhile, is anticipated to expand at a rate of around 40% per year and has the potential to reach $200 billion by 2035.

By 2030, it is expected that the worldwide opportunity for metaverse would reach $13 trillion. By 2030, Web3 and Metaverse will contribute around 8% of the $160 trillion global GDP, according to estimates.