Launched as a cornerstone of the Digital India programme, CSCs have evolved into the world’s largest rural digital service network. Empowering lakhs of entrepreneurs — especially women — they now represent a scalable, sustainable model for inclusive growth, skilling and grassroots digital delivery
India has been in news for building and promoting the Digital Infrastructure as a public good. It is one of the few countries to have offered such digital infrastructure with connected application to other countries in the world for ensuring that such benefits reach citizens of nations with poor or low level of digital penetration. Some of these are disruptive, as UPI, Digital Locker, Aadhaar, Cowin etc.
There is, however, another side to using the digital initiative/programme for building a unique model of sustainable social enterprise, especially in the rural areas. The Government programme of Common Service Centre (CSC) is designed on this framework of skilling and using the service delivery as the incentive for entrepreneurship development. Out of about more than six lakh CSCs, more than one lakh are operated and managed by women. Women-led ICT-enabled enterprises on such a large scale and geographically equitably spread across the country is unique and probably first of its kind in the world. Digital service delivery model through a local entrepreneur (CSC) enabling citizens to access most of the G2C and B2C close to the place of residence in India is today the world’s largest network.
Started in the year 2006, the real momentum to the CSC scheme was provided after 2014 when CSC became an integral part of the ‘Digital India’ programme and got the desired support at the political level. Government took steps to make the programme a “movement” rather than a scheme and generated passion and commitment amongst the new breed of entrepreneurs to serve the society and build sustainable enterprises. There were only 68,000 functional CSCs before the year 2014 which has increased to more than six lakhs as on March 2025.
Garnering Private Capital
Government did not provide any capital support required for the infrastructure to start such enterprises but utilised the network to deliver various services to citizens. With an average capital investment of Rs 2 lakhs for each CSC, the total private investment in this scheme has been to the tune of Rs 12,000 crore.
Government support enablement to catalyse the private capital investment from a large number of entrepreneurs, that too mainly in the rural areas, is exemplary and a lesson/case study to take similar initiatives in other areas such as agriculture and allied sectors and mobilise private capital for investment for larger public good.
Government service delivery through the CSC has evolved over a long period of time. Even today some States are unable or unwilling to deliver the G2C through the CSC network. In such States either the service delivery framework is still underdeveloped or being delivered through other channels. The good thing is that at GOI level, almost all the Ministries/departments are utilising the CSC network to deliver the services to the citizen.
Aadhaar Registration and Updates
Initially the sustainability and enthusiasm for the entrepreneur was by enabling Aadhaar registration for citizens. More than 20 crore of Aadhaar registrations were done through CSC, which helped in increasing the credibility of CSC entrepreneurs in the community as well as increased their income substantially. About 40,000 CSCs at some point were doing Aadhaar registration. They also played a significant role in registration of school-going children and the new-born which the Government was unable to get through its other channels.
This service was stopped and resulted in a big loss of business to the CSC entrepreneur, besides non-utilisation of the capital invested (each Aadhaar centre required a capital of Rs 3 lakh). Subsequently, only Aadhaar updation was allowed through selected CSCs (those working as banking correspondent — BC). Stoppage of Aadhaar was a great setback for the entire CSC ecosystem.
Financial Services
G2C for the CSC was only an enabler and did not provide the adequate resource for developing a sustainable business model. CSC then started to focus on other services as BC and B2C. The banking, insurance and pension services did help to a great extent in enhancing the income of the CSC entrepreneur. Not only public sector banks but banks such as HDFC supported in promoting the delivery of financial services to citizens through the CSC. HDFC MD even visited many CSCs and set up an exclusive team at every level to support the CSC in delivering their products and services (PSB MDs do not even visit their branches). Similarly, for the insurance services HDFC Ergo and India First were the first few to use the CSC network. IRDAI, however, for the first time enabled a CSC to work as Broker — deliver products of all the insurance companies — and framed guidelines for the same. Citizens can now pay premium for the insurance policies and purchase new policies of Life and Non-Life through the CSC. Delivery of financial services through the CSC became a game changer as the BC can put up a board of the concerned Bank which enhanced the footfalls significantly and increased revenue.
Digital Literacy and Educational Services
Government scheme of PMGDISA — digital literacy programme for training 6 crore citizens through the CSC network transformed the CSC into a digital Knowledge Hub. The CSC could improve on the infrastructure — 5-10 computers — and identify a new gamut of long-term service delivery — educational services. PMGDISA redefined the CSC delivery framework and a number of service providers like NIELIT, NIOS, IGNOU, Symbiosis, IIT Mumbai got associated in making their courses available to the citizen through the CSC. The launch of CSC Bal Vidyalaya — more than 3000 — is another step in a similar direction. Concept of school without teacher — promoting education through a facilitator using technology — has been tried in these Bal Vidyalayas. CSC could support those children/citizens who are weak in studies/unable to go to school or college or not allowed to go but desire to study. Remote proctoring exam was first time introduced in the country through CSC and benefitted a large number of girls/women who could not or were not allowed to go to the examination centre which in many cases were 100-200 km away from their residence. Educational services through the CSC mainly supported the girls and women from rural India. Even the OBC, SC, ST and minorities got benefitted, which is reflected in the number trained and certified under the digital literacy programme.
Delivery of Products
CSC has become a reliable instrument for promoting digital and financial inclusion in the country. These are now being utilised extensively by private companies to promote/sell their products across the country in an easy and acceptable format. Large companies as Tata, IFFCO, UNIBIC, Crompton, Symphony etc. are delivering products and finding this non-traditional channel quite exciting. Companies who cannot set up distribution channels and have new products can utilise the CSC channel for competing with established players. For CSC VLEs this is a new stream of business.
What Next?
CSC service charges have not been revised since inception and need immediate intervention by the State Government to consider so as to enable the VLE cope up with enhanced cost in maintaining the establishment and infrastructure. Aadhaar updation can be allowed through all the CSCs — of course with required regulatory prescription.
CSC played a significant role in activation of Bharat Net Phase 1. They can be utilised to maintain and manage the last mile of Bharat Net, which can be a win-win for Government, internet provider (BSNL) and the citizen. CSC VLE can work as ‘Cable Connection Provider’ for the last mile ISP. Rather than selecting large companies, it is better to select/engage the local CSC for optical fibre maintenance and upkeep of the GPON — Panchayat level equipment. As CSC will be the first user of the internet in the village, he/she will ensure its proper upkeep and maintenance. We can then only fulfil the Government dream of ‘Atma Nirbhar Bharat’ and ‘Gram Swaraj’ thereby creating local level skilled resources.
Similar to the PMGDISA, a programme to enable citizens learn how to use AI and protect themselves from cyber threats can further enhance the role of CSC in promoting use of emerging technology by the citizens, especially those living in rural India — a truly digitally inclusive society.
CSC can also be transformed as ‘Digital Knowledge Hub’, the Government earlier programme of Digital Village can be revisited and CSC entrepreneurs can truly be utilised for the overall village community (child, adult, women and old) empowerment and support Government in delivering the schemes and programmes effectively and efficiently. Even the private sector companies, especially the emerging ‘start-ups’ can use the network for easily accessible outreach.
CSC can enable them to deliver products and services across the country including the remote and difficult areas which otherwise are quite cumbersome and costly through the traditional distribution channel. Each CSC on average directly or indirectly engages four persons and can be further supported for sustaining the manpower through additional services delivery. A network employing more than 2 million persons, especially in rural India, is a story of success of the Digital India programme and can be further utilised as a model to promote similar grassroot level institutions in agriculture, social and allied sectors of the economy. Each of the CSCs can be registered and promoted as a “Start-up” and provided incentive similar as provided in the prescribed policy. We can be the first nation of having six lakh “Start-ups” uniquely designed to meet the expectations of the youth and build sustainable business at grassroot level.
(The writer is retired IAS officer)
