In a major push to digitize small business operations, the Government of India has launched a dedicated initiative to offer government-backed digital wallets tailored specifically for sole enterprises. The move, led by the Ministry of Electronics and Information Technology (MeitY) and the National Payments Corporation of India (NPCI), aims to provide secure, low-cost, and feature-rich digital financial tools to sole proprietors who run micro-businesses in retail, services, and local trades. This initiative is a key component of India’s broader strategy to promote financial inclusion and strengthen digital commerce infrastructure at the grassroots level.

The new digital wallets are being rolled out in collaboration with banks and UPI-based platforms, and offer features such as QR code payments, invoice generation, transaction history, tax tracking, and integration with GST and Udyam registration IDs. Sole business owners can use these wallets to receive customer payments, pay vendors, manage expenses, and maintain simplified records of their business transactions. Registration is Aadhaar and PAN-linked, requiring minimal documentation, and can be completed either online or through Business Correspondents and Common Service Centres (CSCs) across the country.

Officials emphasized that these wallets are designed to serve the unique needs of sole entrepreneurs who may not have access to advanced banking solutions or accounting systems. By formalizing cash flows and building digital transaction trails, the initiative is expected to improve credit eligibility for small business owners, particularly under schemes like MUDRA and the Credit Guarantee Fund for Micro Enterprises. Additionally, wallet usage data may also help sole proprietors demonstrate financial viability when applying for government tenders or subsidies. Industry experts have welcomed the initiative, stating it is a crucial step toward empowering India’s most numerous and often under-supported business segment through technology.