Chaitanya AwasthiAIR 37 · CSE 2022 · 277 wordsTheir whole copy
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Recently RBI released the Digital Payments Index showing a 40% increase in digital payments in country. UPI showed the most growth dominating the volume segment whereas the value segment was championed by RTGS and NEFT.
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Factors Responsible
(1) Digital India ↳ A host of policy measures and incentives have catalyzed the rapid adoption of digital payments. ↳ Number of citizen - government interactions have been digitized. eg. e-nagarsewa, digital tax/fee payments etc. (2) Digital Economy ↳ Rapid Digitization and platformization of economy has pushed transactions into the digital sphere. (3) Covid Induced Behavioural Changes ↳ The lockdown made people opt for remote and contactless services from shopping to bill payments. (4) Digital Inclusion ↳ Internet penetration and mobile usage has grown rapidly in rural and urban India. ↳ Jan Dhan Yojna and JAM trinity has ushered a new era of digital society. (5) Rise of Startups ↳ Advancement in technology has been harnessed by companies like PayTm etc. for customer experience betterment.
Government Initiatives
(1) Push to Digital India and e-Governance (2) Jan Dhan - Aadhar - Mobile trinity (3) Banking Products → NEFT, RTGS → UPI, RuPay Cards (4) Payments Infrastructure Development Fund (PIDF) (5) Rationalisation of Merchant Discount Rate (6) Work on Central Bank Digital Currency (CBDC) and eRUPI (7) Regulatory Sandbox initiative (8) Retail Direct Gilt Accounts for Securities. (9) Target of $ 1 trillion Digital Economy by 2025.
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Digital Payments will play a crucial role in taking India closer to its ambitious and global stewardship. RBI in its Payments Vision 2025 has outlined the 4Es - E payments for Everyone, Everywhere, Everytime based on 5Is - Integrity, Inclusion, Innovation, Institutionalization, Internationalisation.