What happens when the government plays the role of regulator, policymaker, and operator?

The government has played a pivotal role in establishing and promoting Digital Public Goods (DPG) and Digital Public Infrastructure (DPI) in the past decade and a half, and there have been a few which have been integral in our daily lives in more ways than one.

The reason why these solutions exist is plain and simple: There emerged companies which disrupted the landscape of finance, commerce, mobility and a whole lot of other aspects of our lives, but as they gained prominence, they also started to play by their own rules.

The regulator was not able to act fast enough in most cases to keep things in check. So the government intervened and helped establish and promote solutions which would keep things in check and protect the interests of all the parties involved.

Some solutions literally changed the way our day-to-day lives are, and created businesses which are built on top of these solutions. Think UPI, ONDC or Bharat Connect (formerly known as Bharat Bill Payment System).

In addition to creating and shaping these systems, frameworks, or protocols, these government-backed players, or GBPs, as we referred to them in this episode, also became competitors in what they had helped build, which begs the question: What kind of system does this shape up to be?

In episode 15 of Two by Two, hosts Rohin Dharmakumar and Praveen Gopal Krishnan sit down with Anupam Manur, Professor of Economics at The Takshashila Institution, to break down the interventionist solutions championed by the government. From UPI and ONDC to the Unified Lending Interface.

Two by Two is also a newsletter, where every Friday, a short, storified version of the latest episode is sent out to subscribers for free. You can sign up for the Two by Two Newsletter here.

Additional listening:

Google Pay: Big. Successful. Vulnerable

Additional reading:

You need to download Digiyatra again. But it’s less about a tech upgrade and more about a scam

RBI is competing with its regulated entities — and killing competition

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This episode of Two by Two was researched and produced by Hari Krishna. Rajiv CN, our resident sound engineer, mixed and mastered this episode.

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