All Developments in Protean in 2024

In 2024, Protean eGov Technologies experienced a transformative year, redefining its business model and achieving remarkable milestones across its core and emerging verticals. 

NGO Accreditation Milestone

In December 2024, Protean Life, a flagship platform of Protean eGov Technologies Ltd., accredited over 1,000 NGOs nationwide. This milestone significantly enhanced the platform's ability to connect corporates with impactful projects, fostering meaningful social change.

Award-Winning Social Impact

Protean Life received the Best Fintech Initiative for Social Impact award at the IFTA 2024 Awards, hosted by the India FinTech Forum. This recognition highlighted Protean Life's innovative use of disruptive technology to drive significant social impact—advancing financial inclusion and developing scalable solutions that transformed lives. 

Additionally, Protean Life introduced an innovative recommendation system designed to align corporates with suitable NGOs or projects. This system leverages advanced algorithms to match organisations with initiatives that best fit their sustainability goals, maximising impact.

Innovative Recommendation System

Protean Life is an all-encompassing platform that Protean eGov Technologies Ltd developed to streamline sustainability initiatives, including Corporate Social Responsibility (CSR), Environmental, Social, and Governance (ESG) projects, and broader sustainability efforts. 

Key Features of Protean Life:

1. Partner Discovery: Easily find and connect with accredited NGOs and partners based on location, project theme, or other filters, making it easier to implement projects.
2. Fund Management: Securely transfer funds and manage finances with tools that ensure accuracy and compliance. The maker-checker feature adds extra security for smoother document handling.
3. Easy Project Creation: Quickly start CSR projects, track them using unique identifiers, and seamlessly share them with others.
4. Project Monitoring: Track projects effortlessly, with automatic alerts for essential milestones to ensure goals are met on time.
5. Document Management: Store and organise essential documents in a centralised system for easy access, improving transparency and simplifying compliance and audits.

Under the visionary leadership of MD and CEO Suresh Sethi, Protean eGov Technologies has positioned itself at the forefront of Digital Public Infrastructure (DPI) with a strategic focus on four key verticals:

• ONDC (e-commerce), 
• Finance and data stack, 
• Global cloud and InfoSec services, and 
• Sustainability initiatives, exemplified by Protean Life

These new businesses are expected to contribute 20-25% of Protean’s revenue in the next 2-3 years, a promising trajectory given the company’s strong Q2FY25 performance with ₹219 crore in revenue and ₹28 crore in profit after tax. 

Protean now commands an impressive 55% market share in tax and pension services, solidifying its industry leadership. Highlights of its growth include the successful launch of NPS Vatsalya for minors and Protean Life’s CSR-driven open network initiative. With shares soaring by 109% in 2024 and a market capitalisation surpassing ₹7,388 crore, Protean continues to innovate, empower, and redefine India’s digital landscape.

2024 has been a hallmark year for Protean, witnessing significant achievements across its verticals, from financial services to agriculture, health, and digital commerce. 

Let us dive deeper into how Protean shapes the future across its thriving verticals. 

Key Developments in the National Pension System

The National Pension System (NPS) is a market-linked defined contribution scheme designed to help individuals save for retirement. This voluntary and flexible scheme offers portability across jobs and geographies and enables disciplined long-term savings.

Significant Updates and Developments in NPS (2024)

1. Enhanced Security: Mandatory Aadhaar-Based Two-Factor Authentication

• Date Announced: 15 March  2024
• Effective From: 1 April 2024

The Pension Fund Regulatory and Development Authority (PFRDA) mandated two-factor Aadhaar-based authentication for all password-based users logging into the Central Recordkeeping Agency (CRA) system to enhance security.

Starting 1 April 2024, all password-based users must undergo two-factor Aadhaar-based authentication to log into the Central Recordkeeping Agency (CRA) system. This additional security layer was introduced via a circular issued by the Pension Fund Regulatory and Development Authority (PFRDA) on 15 March 2024 to safeguard user data.

2. NPS Partial Withdrawal Rules

• Effective From: 1 February 2024
• Details: Subscribers can now withdraw up to 25% of their contributions after 3 years of account opening, allowing greater flexibility for accessing funds.

From 1 February 2024, NPS subscribers can withdraw up to 25% of their contributions after completing three years of account opening. This is a significant enhancement, offering more flexibility in managing financial needs.

Need funds for emergencies? Learn more about partial withdrawal benefits on the official PFRDA website.

3. Introduction of NPS Vatsalya

• Date Announced: 23 July 2024
• Details: A new scheme, NPS Vatsalya, was launched to enable parents to invest in their minor children’s retirement.
  • Minimum Contribution: ₹1,000 annually
  • Initial Deposit: ₹1,000
  • Maximum Contribution: Unlimited

The scheme emphasises financial responsibility early on and offers tax benefits to encourage participation.

The revolutionary NPS Vatsalya Scheme was introduced on 23 July 2024 to enable parents to invest in their children’s retirement from a young age. The scheme offers an annual minimum contribution of ₹1,000, with no upper limit, making it an affordable option for securing a minor’s financial future.

Tax benefits associated with this scheme make it an attractive option for families seeking long-term planning for their children.

4. Atal Pension Yojana (APY) Opening Rule Change

The Pension Fund Regulatory and Development Authority (PFRDA) has updated the rules for opening an Atal Pension Yojana (APY) account to enhance accessibility and flexibility. 

The latest update shows subscribers can open and maintain their APY accounts with any of the three registered CRAs. 

Here are the three approved CRAs:

1. Protean eGov Technologies Pvt Ltd (previously the sole provider)
2. Computer Age Management Services Ltd. (CAMS)
3. KFin Technologies Ltd.

5. NPS via Bharat Bill Payment System (BBPS)

• Date Announced: 28 August 2024
• Details: Contributions can now be made through BBPS, using apps like PhonePe and BHIM. Charges, including trail commissions, will be displayed upfront and borne by the subscriber.

Since 28 August 2024, NPS subscribers have been able to contribute through the Bharat Bill Payment System (BBPS) via popular apps like PhonePe, BHIM, and more. Trail commissions and charges will be displayed upfront during the payment process.

6. Enhanced Tax Deductions for Employer Contributions

The tax deduction for employer contributions under NPS has increased from 10% to 14% of the basic salary. This applies to private and public sector employees opting for the new tax regime. For instance, an employee with a basic salary of ₹1 lakh/month can now claim an additional annual deduction of ₹48,000.

7. Changes in Final NPS Withdrawals

Subscribers can now withdraw 60% of their corpus tax-free, while the remaining 40% is used to purchase an annuity plan. Previously, only 40% was tax-free.

8. Introduction of Systematic Withdrawals (SLW)

NPS introduced the systematic lump sum withdrawal (SLW) facility this year. It allows retirees to withdraw funds phased, improving cash flow management during retirement.

Learn how to activate SLW to manage your retirement income better.

9. Enhanced Equity Allocation Options

The maximum equity exposure of 75% until 60 has been retained, enabling subscribers to maximise investment growth during their working years.

10. Direct Remittance Facility for Same-Day NAV (T+0)

• Effective From: 1 July 2024
• Details: Contributions received via D-Remit before 9:30 AM are invested the same day, optimising returns.

The Direct Remittance (D-Remit) facility was enhanced to provide same-day Net Asset Value (NAV) for contributions made before 9:30 AM.

11. Oversight Mechanism for NPS Contributions

• Date Announced: 14 October 2024
• Details: The Department of Pension and Pensioners' Welfare (DoPPW) mandated the creation of an oversight mechanism to monitor contributions. Ministries must submit bi-annual reports to ensure proper handling of employee contributions.

The Department of Pension and Pensioners’ Welfare (DoPPW) introduced an NPS Oversight Mechanism on 14 October 2024. This mandates six-monthly reports from ministries to ensure accurate handling of contributions.

12. Central Government Voluntary Retirement Option

Details: Central government employees under NPS can now opt for voluntary retirement after 20 years of service. They must give three months' notice.

13. Effect of Compulsory Retirement on Pension Corpus

• Date Announced: 11 October  2024
• Details: As per Rule 18 of the Central Civil Services (Implementation of NPS) Rules, 2021, compulsory retirement, dismissal, or removal from service affects the accumulated pension corpus under NPS for central government employees.

If you’re an NPS subscriber or planning to open an account, these updates provide enhanced flexibility, security, and tax-saving opportunities.

• To open an NPS account, visit the Protean CRA website.
• Track updates and rules: Regularly check PFRDA notifications for the latest developments.

Key Developments in Open Network for Digital Commerce

The Open Network for Digital Commerce (ONDC) has emerged as a pivotal player in India's e-commerce ecosystem. With a mission to democratise digital commerce, ONDC aims to break down barriers and create a seamless, inclusive, and scalable network for buyers, sellers, and service providers. Throughout 2024, ONDC has made significant strides, navigating challenges, driving innovation, and redefining the landscape of digital commerce.

Here’s a look at its key developments this year.

1. Scaling Financial Incentives: A Strategic Pivot

In 2024, ONDC recalibrated its financial incentives for network participants. Initially, the network provided substantial financial assistance to encourage participation. For instance:

• July 2024: Financial incentives peaked at up to ₹3 crore per participant.
• August 2024: This was reduced to ₹2.5 crore.
• September 2024: The cap further dropped to ₹40 lakh.
• October 2024: The festive season temporarily increased to ₹60 lakh.
• December 2024: Incentives were stabilised at ₹40 lakh, with a cap of ₹30 lakh for participants averaging over 1 million monthly orders between August and October.

The reduction in incentives reflects ONDC’s strategic focus on conserving cash and driving sustainability. Starting in January 2025, a “network infrastructure development and services” fee of ₹1.50 per transaction over ₹250 underscores its move toward financial self-sufficiency.

2. Transaction Volume and Merchant Participation

ONDC’s transaction volume and merchant network have grown exponentially. By November 2024, the platform facilitated 14.45 million transactions, a steady increase from the 13.9 million orders in October 2024. 

Mobility services accounted for 6.2 million transactions, while non-mobility transactions reached 8.2 million. 

Key metrics include:

• Since inception: Over 142 million transactions.
• Active merchants: 720,000 merchants across 680 cities.
• Delivery footprint: Over 1,200 cities.

This expansion reflects ONDC’s commitment to inclusivity. Many of the sellers onboarded are small or medium-sized enterprises (SMEs).

3. Sector-Specific Growth: Mobility and Non-Mobility

Mobility:

Mobility services remain a cornerstone of ONDC’s operations, contributing to 40% of total transactions. Over the past eight months, mobility services recorded a 120% growth.

Non-Mobility:

Non-mobility sectors saw an 825% growth during the same period, driven by categories like food (300% growth), grocery, fashion, and home goods. The introduction of hyperlocal logistics in April 2024 has been a game-changer, enhancing the platform’s appeal to a broader audience.

4. Milestone Events: ONDC Startup Mahotsav

In May 2024, ONDC, in collaboration with the Department for Promotion of Industry and Internal Trade (DPIIT), hosted the ONDC Startup Mahotsav in New Delhi. This event symbolised the synergy between the Startup India initiative and ONDC. 

Key highlights include:

• Participation from 5,000 startups (hybrid mode).
• Commitment from 125 ecosystem stakeholders, including unicorns and high-growth businesses like EaseMyTrip, Zerodha, and PolicyBazaar, through Letters of Intent (LoIs).
• A focus on nurturing innovation and collaboration within the startup ecosystem.

ONDC’s MD and CEO, Shri T.K. Koshy, highlighted the event as pivotal in India’s digital transformation journey. Over 5 lakh sellers were onboarded, 70% of whom are SMEs.

5. Innovations and Collaborations

gCommerce Initiative:

ONDC partnered with Nazara Technologies to launch “gCommerce”, a unique in-game shopping platform. This platform aims to address challenges faced by Indian game developers, such as low in-app purchase conversion rates. Developers can earn commissions on transactions initiated by players, opening new revenue streams in the gaming sector.

Magicpin’s Exponential Growth:

Hyperlocal e-commerce firm Magicpin achieved remarkable success on ONDC:

• Recorded 15 times order growth in 15 months.
• Reached 1.5 lakh daily orders for food and logistics services.
• Onboarded 70,000 restaurant partners, up from 22,000 in March 2023.
• Plans to invest ₹100 crore to onboard an additional 1 lakh restaurants and cloud kitchens.

Magicpin’s CEO highlighted its significant market share in cities like Delhi and Bengaluru. Magicpin fulfils 90% of food orders from buyer apps like Paytm and Ola.

6. Financial Performance

ONDC’s financial trajectory reflects its growing ambitions and associated costs:

• FY24 Loss: ₹195.61 crore, up from ₹46.76 crore in FY23.
• Marketing Budget: Increased to ₹91.73 crore from ₹3.27 crore in FY23.
• Network Maintenance Costs: Rose to ₹35.49 crore from ₹14.66 crore in FY23.

Despite these losses, ONDC is poised for long-term sustainability, driven by its shift toward fee-based revenue models.

7. Expanding Ecosystem

ONDC continues to onboard major buyer apps, enhancing its ecosystem:

• Leading Buyer Apps: Paytm, Magicpin, Ola, Snapdeal, Namma Yatri (Bengaluru), and Yatri Sathi (Kolkata).
• Exit of PhonePe’s Pincode: Reflects the platform’s competitive and evolving nature.

8. Other Key Developments 

   

Source: Press Releases by ONDC

Key Developments in PAN

The Government of India, in its quest to modernise financial processes, has introduced PAN 2.0, an enhanced version of the Permanent Account Number (PAN) system. This landmark initiative aims to streamline taxpayer registration, improve digital accessibility, and ensure better data security. Below is a detailed breakdown of the updates, complete with dates, facts, and figures:

1. Launch and Financial Outlay

• Approval Date: The Cabinet approved the PAN 2.0 Project in November 2024.
• Budget Allocation: ₹1,435 crore has been allocated for this transformative initiative.

This significant investment underscores the government's commitment to building an efficient, technology-driven system that aligns with the broader Digital India Vision.

2. Key Features of PAN 2.0

a) Unified Digital Portal

• Integration: All PAN and TAN services, previously hosted across three separate portals—the e-Filing Portal, the UTIITSL Portal, and the Protean e-Gov Portal—will now be unified under a single portal managed by the Income Tax Department.
• Services Covered:
  • PAN/TAN allotment, updates, and corrections.
  • Online PAN Validation (OPV).
  • Aadhaar-PAN linking.
  • Issuance and reprinting of e-PAN.

b) Paperless and Cost-Effective Processes

• Free e-PAN:
  • Issued free of cost and sent directly to the registered email ID.
  • Physical PAN cards are available for ₹50 (domestic) and ₹65 plus shipping for international applicants.
• Eco-Friendly Approach: The system eliminates paperwork, enabling a completely online process.

c) Enhanced Security

• PAN Data Vault: A dedicated data vault to safeguard taxpayer information against misuse or breaches.
• ISO Certifications: Adopts ISO 27001, ISO 9001, and other global standards to ensure data quality, security, and service management.

d) QR Code Upgrade

• Dynamic QR Code: This code includes the latest information, such as a photo, signature, name, parents' names, and date of birth.
• Validation: A dedicated QR reader application is available to verify the authenticity of PAN details.

3. Changes for Existing PAN Cardholders

• Continuity: Current PAN cards remain valid.
• Updates: Existing PAN holders can apply for re-issuance or updates to get QR-enabled cards if desired.

4. Simplified Process for TAN (Tax Deduction and Collection Account Number)

• Integration: TAN services are also part of the unified portal, facilitating seamless TDS/TCS-related operations.
• Mandatory Compliance: Entities required to deduct TDS or collect TCS must obtain TAN, failing which penalties apply.

5. Benefits to Non-Resident Indians (NRIs)

• PAN Requirements for NRIs:
  • NRIs must obtain a PAN if filing income tax returns or engaging in financial transactions requiring PAN quoting.
  • Application can be made via Form 49A, either online (UTIITSL/Protean) or offline.
• Validation of Old PAN Cards: NRIs with existing PANs need not apply for new cards; their current PANs remain valid under PAN 2.0.

6. Penalties and Compliance

• Section 272B: A penalty of ₹10,000 applies for the following:
  • Not obtaining a PAN when required.
  • Quoting an incorrect PAN in official documents.
  • Holding multiple PANs.
• Duplicate PAN Detection: PAN 2.0 employs advanced mechanisms to identify and prevent duplicate PAN issuance.

7. Milestones in PAN Evolution

• 1972: Introduction of PAN as a unique 10-digit alphanumeric identifier.
• 2017-18: QR codes added to PAN cards.
• 2024: Launch of PAN 2.0 with dynamic QR codes and unified services.

8. Compliance Deadlines

While no specific deadlines for transitioning to PAN 2.0 have been announced, the system has already been integrated as of November 2024. Current PAN holders can voluntarily opt for upgrades or continue using existing cards without interruptions.

9. Impacts and Benefits

• For Taxpayers:
  • Faster processing of PAN issuance and corrections.
  • Centralised access to all services.
  • Greater convenience with eco-friendly, paperless systems.
  • Enhanced security measures ensuring data protection.
• For the Economy:
  • Promotes financial transparency.
  • Reduces tax evasion through secure and reliable PAN authentication.
  • Strengthens India’s position as a digitally empowered nation.

10. International Comparisons

• PAN 2.0 has been benchmarked against global best practices for taxpayer registration systems, including seamless digital processes and strong data security protocols.

The PAN 2.0 Project represents a monumental leap toward a more transparent, secure, and user-friendly tax ecosystem. Focusing on technology-driven transformation, this initiative redefines taxpayer registration, making compliance easier while ensuring better governance.

This ambitious overhaul simplifies the process for taxpayers and aligns with India’s broader goals of fostering a robust Digital Economy.

The Permanent Account Number (PAN) has long been a cornerstone of India’s financial and taxation system. 

Key Developments in Digital Public Infrastructure

Digital Public Infrastructure (DPI) refers to the foundational digital systems that enable seamless interactions between citizens, governments, and businesses. These include platforms like identity systems (e.g., Aadhaar), payment networks (e.g., UPI), and governance tools. DPI’s role in advancing financial inclusion, economic growth, and societal empowerment has been revolutionary, particularly in India, where initiatives like UPI and ONDC have transformed how people interact with digital services.

As one of the pioneers in building India’s DPI, Protean eGov Technologies has made significant strides in e-governance, cementing its position as a market leader.

Here’s a detailed look at Protean’s journey through the transformative landscape of DPI.

Protean’s Key Achievements in DPI (Chronological Overview)

Union Budget 2024-25: DPI Takes Centre Stage

India’s digital public infrastructure was significantly pushed in the Union Budget 2024-25. The finance minister emphasised building DPI at a population scale across sectors, including credit, e-commerce, education, health, law and justice, logistics, MSME, service delivery, and urban governance. 

The Budget proposed using DPI for a digital crop survey for Kharif in 400 districts, including 6 crore farmers in the farmer and land registries. 

These initiatives align closely with Protean’s expertise in building agricultural stacks comprising universal farmer IDs, land records, crop registries, and soil health records. 

1. Protean Wins Best DPI Company of the Year

In another landmark achievement, Protean eGov Technologies was named Best Digital Public Infrastructure (DPI) Company of the Year at the Global Fintech Awards (GFF) 2024. This prestigious accolade, the first at the GFF, underscores Protean’s leadership and commitment to building inclusive DPIs that empower billions. (Source: Moneycontrol)

2. Introduction of ‘RISE with Protean’: 

Protean unveiled its new platform, RISE with Protean (risewithprotean.io), India’s first multi-sectoral marketplace. 

Designed to streamline enterprise digitisation, this platform offers APIs, microservices, and plug-and-play user journeys across various sectors, including digital commerce, mobility, education, and healthcare. 

‘RISE’ hosts over 300 ready-to-use offerings, enabling businesses to go to market faster with scalable solutions. This initiative further cements Protean’s position as a DPI leader. 

Source: Express Computer 

Protean’s MD and CEO, Suresh Sethi, described RISE as a “giant leap” in  Protean’s mission to build for billions, enabling businesses to unlock their digital commerce potential with frictionless solutions.

3. Protean’s Multi-Sectoral Contributions to DPI

• Agriculture: Universal farmer IDs, land and crop registries, and soil health records contribute to DPI-driven agricultural reforms.
• Healthcare: API offerings under the Ayushman Bharat Digital Mission (ABDM) enhance digital health ecosystems.
• E-commerce: ONDC plug-and-play solutions to empower digital commerce.
• Education and Skilling: ONEST initiatives for upskilling India’s workforce.
• Regulatory Compliance: Digital onboarding and identity verification solutions for BFSI and RegTech sectors.

Protean eGov Technologies has firmly established itself as a trailblazer in DPI, transforming sectors from finance and agriculture to e-commerce and health. 

To Summarise 

The year 2024 has been a year of dynamic growth and strategic evolution for Protean eGov Technologies. From solidifying its leadership in established sectors like tax and pension services to pioneering innovative solutions in emerging areas like ONDC and DPI, Protean has consistently demonstrated its commitment to digital transformation and societal impact. The company's impressive financial performance, coupled with its focus on sustainability and social responsibility, positions it as a key player in shaping India's digital future. As Protean continues to expand its reach and influence across diverse verticals, it remains dedicated to empowering individuals, businesses, and governments through cutting-edge technology and inclusive solutions.

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