No, it's not so that you don't have to give up the original license the next time the traffic policeman on the corner asks you for it.
The next time you're asked to show your driver's license and your vehicle registration papers, you don't need to show the physical copy. Just show the digital copies stored in the DigiLocker mobile app on your phone! The Government of India allows it.
And, if you don't have the DigiLocker app, just head on over to https://digilocker.gov.in/public/register and you can just register with your Aadhar number!