Policy Update
Riya Rawat
Introduction and Background
India’s digital transformation journey has been both ambitious and inclusive in scope. Among the various initiatives under the National e-Governance Plan (NeGP), the Common Services Centres (CSC) Scheme stands out as a significant intervention aimed at ensuring the last-mile delivery of digital services. Approved in 2006, the CSC Scheme was envisioned to cover all six lakh census villages through one lakh ICT-enabled service delivery outlets, bridging the vast gap between the government and rural citizens.
In the early 2000s, the Indian rural population suffered from limited access to government services due to infrastructural and bureaucratic constraints. This lack of digital reach translated into inefficient service delivery, corruption, and exclusion. The CSC Scheme emerged as a transformative model intended to reduce these inefficiencies through an inclusive, public-private partnership framework involving Village Level Entrepreneurs (VLEs) as local facilitators.
Structure and Functioning
The CSC ecosystem is organised in a three-tier framework. At the top, CSC e-Governance Services India Limited—a Special Purpose Vehicle (SPV) under the Ministry of Electronics and Information Technology (MeitY)—serves as the nodal implementing agency. The SPV is responsible for content management, service design, infrastructure provisioning, and national-level partnerships. Below it, State Designated Agencies (SDAs) facilitate integration with state schemes and help identify CSC locations, coordinate inter-departmental collaboration, and promote citizen awareness.
At the grassroots level, the Village Level Entrepreneur (VLE) is the linchpin of the CSC Scheme. As of April 2025, India has over 5.34 lakh operational CSCs, of which 4.17 lakh are in rural areas and 1.16 lakh in urban areas (CSC, 2025). VLEs provide access to essential services across domains such as health, education, financial inclusion, agriculture, utility bill payment, and government certificates. Services are delivered via the Digital Seva Portal (DSP) and non-DSP platforms, with over 335 lakh total transactions registered in April 2025 alone—140.79 lakh through DSP and 195.09 lakh via non-DSP routes.
CSC 2.0 and Expansion Strategy
Building on the experience of the original CSC Scheme, the government launched CSC 2.0 in 2015 under the Digital India programme. Its key objective was to establish at least one CSC in each of India’s 2.5 lakh Gram Panchayats, thereby ensuring ubiquitous access to citizen-centric services (MeitY, 2015). This phase prioritised sustainability, financial viability, and inclusivity by extending support to underdeveloped regions and enabling women, differently-abled persons, and marginalized communities to become VLEs.
Under CSC 2.0, the scope of services has expanded substantially. Initiatives such as Tele-Law, Wi-Fi Choupal, Telemedicine, CSC Academy, and PMGDISHA (Pradhan Mantri Gramin Digital Saksharta Abhiyan) have converted CSCs into holistic development hubs. These centres are now instrumental in executing schemes like Ayushman Bharat (PM-JAY), eShram portal registrations, and digital banking via DigiPay.
Impact on Governance and Rural Empowerment
The CSC Scheme has emerged as a cornerstone in India’s digital governance framework. By decentralising service delivery and removing the need for physical visits to distant government offices, CSCs have significantly reduced transaction costs for rural citizens. Services such as Aadhaar enrolment, income certificates, crop insurance, and exam registrations are now locally accessible.
Beyond service access, CSCs have also had a profound economic impact. VLEs—numbering over 5.4 lakh—generate local employment and foster grassroots entrepreneurship. Notably, women-led CSCs have proven to be effective in building trust and improving service uptake among female citizens.
During the COVID-19 pandemic, CSCs played a vital role in public health outreach—enabling teleconsultations, facilitating vaccination registrations, and supporting welfare disbursements under the PM Garib Kalyan Yojana. Their role in providing digital access to healthcare, education, and financial inclusion has helped mainstream digitally-excluded communities.
Moreover, CSCs support participatory governance. Citizens can track application statuses, file grievances, and even engage with legal aid services through the Tele-Law platform. In this way, the CSC model also fosters social accountability, transparency, and empowerment.
Challenges and Limitations
Despite its successes, the CSC Scheme is not without structural and operational challenges. Firstly, connectivity and power supply remain erratic in several remote areas. Without reliable broadband or electricity, service delivery is severely compromised. This is especially problematic in hilly, tribal, and conflict-prone regions.
Secondly, capacity gaps among VLEs—especially in Tier 2 and Tier 3 districts—undermine the consistency of service delivery. While the CSC Academy provides training, its reach and effectiveness vary significantly. Many VLEs lack the technical expertise to resolve IT-related issues or manage high-demand services efficiently.
Third, data security and privacy concerns have grown with the proliferation of services. CSCs handle sensitive data, including biometric, financial, and health information. However, the absence of uniform cybersecurity protocols and user awareness poses risks to digital trust.
Fourth, while the model promotes inclusivity, gender disparity among VLEs remains a concern. Patriarchal social norms and mobility constraints often deter women from becoming operators, especially in conservative rural settings.
Lastly, fragmentation across departments and jurisdictions hampers service integration. CSCs often face delays in state-level approvals or documentation inconsistencies that impede delivery efficiency.
Way Forward
To strengthen and future-proof the CSC framework, a multi-pronged strategy is essential. First, there is a need for last-mile infrastructure augmentation through BharatNet and renewable energy solutions to ensure 24/7 operational readiness.
Second, capacity building must be scaled and standardised. The CSC Academy should expand training modules in local languages and incentivise skill upgradation. Introducing VLE performance audits and digital certification mechanisms could further professionalise the workforce.
Third, financial viability must be addressed by broadening the revenue base for VLEs. Bundling in emerging services such as climate-resilient agriculture advisories, mental health teleconsultations, and AI-based legal aid could enhance uptake and incomes.
Fourth, gender-responsive support mechanisms—such as targeted subsidies, security infrastructure, and childcare support—should be introduced to increase the participation of women VLEs.
Fifth, a national CSC Monitoring Dashboard with geo-tagged metrics, citizen feedback tools, and real-time grievance tracking would enhance accountability and policy responsiveness.
Finally, the integration of CSCs with urban governance missions, land record digitisation, and smart village schemes can consolidate their relevance in the digital governance ecosystem.
Conclusion
The Common Services Centres Scheme represents one of India’s most innovative digital inclusion models. By democratising access to public and private services and leveraging grassroots entrepreneurship, CSCs have become catalysts for governance reform and rural transformation. As India continues to push forward with Digital India and e-governance expansion, the CSCs will remain central to achieving equitable development.
However, the long-term success of the scheme will depend on sustained policy attention to infrastructure gaps, capacity-building challenges, and inclusive participation. With robust institutional support and policy convergence, CSCs can evolve into comprehensive hubs for digital empowerment, social equity, and citizen-centric governance.
References
CSC e-Governance Services India Limited. (2025). Common Services Centres performance dashboard, April 2025. https://csc.gov.in/
CSCSPV. (2015). CSC 2.0 Guidelines. Ministry of Electronics and Information Technology. https://cscspv.in/
MeitY. (2025). Digital Seva and e-Governance Services: CSC 2.0 Overview. Ministry of Electronics and Information Technology. https://www.meity.gov.in/
CSCSPV. (2025, May). CSC Newsletter (May 2025). https://egovernance.vikaspedia.in/viewcontent/e-governance/resources-for-vles/common-service-centre-program?lgn=en
Press Information Bureau. (2024, March 18). Digital India Mission and the role of CSCs in bridging rural digital divide. https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2097902
About the Author– Riya Rawat is a researcher at the Impact and Policy Research Institute (IMPRI), pursuing a second master’s degree in Political Science. With a strong background in public policy, gender studies, and international relations, her research interests focus on policy development, analysis, and global affairs.
Acknowledgement– The author extends sincere gratitude to Dr. Arjun Kumar and Aasthaba Jadeja for their invaluable guidance and support.
Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.
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