Consider the following Assertion (A) and Reason (R) and choose the correct code:

Assertion (A):

India Stack' has enabled an online, paperless and cashless digital access to various public and private services. This has reduced the cost of conducting e-KYC.

Reason (R):

India Stack consists of two intercor nected layers, and of these, the 'Payment Layer' has reduced the cost of conducting e-KYC.

Key Points

• Assertion (A) is true: India Stack has indeed enabled an online, paperless, and cashless digital access to various public and private services. This has significantly reduced the cost of conducting e-KYC (Know Your Customer).
• Reason (R) is false: India Stack consists of multiple layers (not just two), including the 'Identity Layer', 'Paperless Layer', and 'Payment Layer'. The cost reduction of e-KYC is primarily attributed to the 'Identity Layer' (Aadhaar) and the 'Paperless Layer' (eSign, Digital Locker), not specifically to the 'Payment Layer'.
• The 'Payment Layer' primarily deals with the Unified Payments Interface (UPI) and other digital payment services, which are not directly responsible for reducing e-KYC costs.
• Therefore, while both (A) and (R) contain some truths, (R) does not accurately explain (A) and contains an incorrect statement about the layers of India Stack.

Additional Information

• India Stack
  • India Stack is a set of APIs that allows governments, businesses, startups, and developers to utilize an open digital infrastructure to solve India's hard problems towards the presence-less, paperless, and cashless service delivery.
  • Key Components of India Stack:
    • Identity Layer: Aadhaar - Provides unique identification and authentication services.
    • Paperless Layer: Includes e-KYC, eSign, and Digital Locker, facilitating paperless transactions.
    • Payment Layer: Unified Payments Interface (UPI) and other digital payment systems.
    • Consent Layer: Data Empowerment and Protection Architecture (DEPA), enabling users to consent to the use of their data.
• e-KYC (Electronic Know Your Customer)
  • e-KYC is an online process of verifying the identity of customers using electronic means.
  • It leverages Aadhaar for authentication and significantly reduces the cost and time required for verification compared to traditional methods.
• Unified Payments Interface (UPI)
  • UPI is a real-time payment system developed by National Payments Corporation of India (NPCI) to facilitate inter-bank transactions.
  • It allows multiple bank accounts to be linked to a single mobile application, providing seamless fund routing and merchant payments.