DHRUVA

Syllabus Areas:

GS II - Governance

GS III - Economy, S & T

The Department of Posts has released a draft amendment to the Post Office Act, 2023 to introduce a new digital addressing system called DHRUVA (Digital Hub for Reference and Unique Virtual Address). This move aims to standardise how addresses are stored, shared, and authenticated in India, replacing conventional text-based addresses with virtual, UPI-like labels. The framework builds on the DIGIPIN system launched earlier this year.

Post Office Act, 2023:

The Post Office Act, 2023 is a new legislation enacted to replace the over 125-year-old Indian Post Office Act, 1898.

The purpose is to modernise the legal framework governing postal services in India and align it with the digital era.

Key Features of the Post Office Act, 2023:

  • Simplified, Modern Law
    • Removes outdated provisions from 1898 Act.
    • Clearly defines powers of the Director General of Postal Services.
  • No Government Monopoly
    • India Post no longer has exclusive rights to carry letters.
    • Private couriers operate freely without legal ambiguity.
  • Recognition of Digital Services
    • Legally acknowledges digital, electronic, and automated delivery systems.
    • Enables innovations like DHRUVA, DIGIPIN, e-consent systems, and new delivery models.
  • Powers for Safety & Standards
    • DG empowered to issue regulations on operations, address systems, and digital standards.
    • Must ensure safety and maintain transparency.
  • Government Exemption from Liability
    • India Post not liable for delay, loss, mis-delivery, or damage due to accidents or unforeseen events.
  • Expanded Role of Postal Department
    • Allows India Post to offer financial, digital, and e-commerce services.
    • Can partner with private firms and act as a digital public infrastructure backbone.
DHRUVA

Draft Amendment and Objective

  • The government has proposed amendments to facilitate a national, interoperable addressing ecosystem.
  • Aim: replace traditional textual addresses with digital, proxy-based virtual addresses.
  • System: DHRUVA, designed to function as a Digital Public Infrastructure (DPI), similar to UPI or Aadhaar.

What is DHRUVA (Digital Hub for Reference and Unique Virtual Address)?

DHRUVA is a new national digital addressing system proposed by the Department of Posts under the Post Office Act, 2023.
It aims to replace traditional text-based addresses with virtual, UPI-like address labels such as name@entity that serve as a proxy for a user’s full physical address.

What DHRUVA Seeks to Achieve

  • Introduce email-like address labels (e.g., name@entity) that represent a user’s physical location.
  • Provide a standard format for address sharing across sectors and services.
  • Eliminate repeated entry of addresses on e-commerce, gig economy, and delivery platforms.

Part of India’s DPI Expansion

  • DHRUVA is conceptualised as a new layer in India’s expanding DPI stack.
  • The government plans to create a Section 8 not-for-profit organisation to manage and oversee the ecosystem.
  • The structural model mirrors NPCI, which governs UPI.

What is NPCI?

The National Payments Corporation of India (NPCI) is a not-for-profit organisation that operates India’s retail digital payments and settlement systems.
It is the central body behind systems like UPI, RuPay, FASTag, AePS, NACH, and more.

NPCI is the umbrella organisation for retail payments in India and acts as a core pillar of India’s Digital Public Infrastructure (DPI).

Established: 2008
 Type: Section 8 Company (Companies Act, 2013)
 Regulated by: Reserve Bank of India (RBI)
 Promoted by: Indian Banks’ Association (IBA)

System Architecture: Roles & Responsibilities

  1. Address Service Providers (ASPs)
    • Issue virtual address labels to users.
    • Equivalent to Payment Service Providers (PSPs) in UPI.
  2. Address Information Agents (AIAs)
    • Manage consent, data flow, and authorisation protocols.
    • Similar to “consent managers” in the Account Aggregator framework.

Consent-Driven Address Sharing

  • Users explicitly authorise platforms to view their full address or coordinates.
  • Permission is time-bound; reauthorisation is necessary after expiry.
  • No mandatory participation—private players can voluntarily adopt the system.
  • The model prioritises data privacy, user autonomy, and transparency.

Use Cases in E-commerce & Gig Platforms

  • Users can share a virtual label instead of writing full addresses every time.
  • Platforms can instantly fetch the verified address + location coordinates.
  • Benefits:
    • Faster onboarding
    • Lower delivery errors
    • Streamlined logistics
    • Reduces repetitive data entry across multiple apps

DIGIPIN: The Foundational Layer

  • DIGIPIN = 10-character alphanumeric code mapping to latitude-longitude coordinates.
  • Precision: ~14 sq. metres per code.
  • Purpose:
    • Improve location accuracy in rural/ambiguous-address areas.
    • Standardise geospatial identification across India.
  • 228 billion DIGIPINs possible for Indian territory.
  • Technology is open-sourced, allowing innovation and private sector adoption.

Governance Structure & Institutional Design

  • The proposed Section 8 company will function under government oversight.
  • Expected roles:
    • Standard-setting
    • Certifying ASPs and AIAs
    • Ensuring security, interoperability, and consistency

Policy Rationale & Benefits

  • Streamlines address verification and delivery.
  • Reduces discrepancies caused by varied formats of Indian addresses.
  • Creates a unified address vocabulary across services.
  • Significant potential applications in:
    • Emergency response
    • Policing and disaster management
    • Public service delivery
    • Census and surveys

Critical Concerns

  • Adoption depends on voluntary participation — may face inertia.
  • Data privacy must be tightly guarded; risk of misuse if consent systems fail.
  • Rural digital literacy could slow mass adoption.
  • Addresses linked with coordinates may raise security and surveillance concerns if poorly regulated.
  • Coordination with state/urban local bodies could become administratively complex.

Future Outlook

  • If the ecosystem scales like UPI, DHRUVA could become:
    • the national standard for digital addressing,
    • a core layer for logistics, commerce, and governance,
    • and a transformative tool for India’s public digital infrastructure.
  • Potential to evolve into the “UPI for locations”.