The Conference on Digital & Cashless Economy recently took place in New Delhi and was focused on the future of digital payments in India. As witnessed in western nations where the transition was made from paper currency to credit cards, India is expected to undergo a similar yet faster shift towards a digital economy.
Whereas the west moved from paper to plastic, India will make an even more significant transition from paper currency to digital currency. This transformation is predicted to occur at a quicker pace and with greater volume than any other place worldwide.
Government Initiatives for Digital Literacy
The Indian government has initiated several programs aimed at promoting digital literacy across the country. A notable initiative is the Pradhan Mantri Gramin Digital Saksharta Abhiyan (PMGDISHA). PMGDISHA aims to make 60 million adults in rural India digitally literate and has already trained over 10 million individuals.
About Pradhan Mantri Gramin Digital Saksharta Abhiyan (PMGDISHA)
PMGDISHA is a scheme designed to enable six crore persons in rural areas, across states and union territories, to become digitally literate. The target is to reach around 40% of rural households by covering one member from every eligible household by the 31st March, 2019.
This scheme aims to bridge the digital divide, particularly focusing on the rural population. Marginalized sections of society such as the Scheduled Castes (SC) / Scheduled Tribes (ST), Minorities, Below Poverty Line (BPL), women, differently-abled persons, and minorities are specifically targeted.
Payments And Settlement Systems In India: Vision – 2019-2021
Transforming India into a cash-lite economy is the key aim of the ‘Payments And Settlement Systems In India: Vision – 2019-2021′ released by the Reserve Bank of India. The document outlines a strategy to develop safe and secure state-of-the-art payment systems in the country.
A significant part of this vision is the launch of Digital India and Digital Payments initiatives which seek to expand technology benefits, particularly in rural areas. The government’s plan ensures these benefits are not confined to a select few but extended to all sections of society.
Direct Benefit Transfer (DBT) and Aadhaar-linked Payments (ALP)
The government has streamlined the payment of wages by using Direct Benefit Transfer (DBT) and Aadhaar-linked Payments (ALP). These measures have helped reduce delays, curb corruption, and plug any leakages in the system.
Digital Payment System: Facts and Figures
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| Initiative | Target | Current Status |
|---|---|---|
| Pradhan Mantri Gramin Digital Saksharta Abhiyan (PMGDISHA) | 60 million adults digitally literate | Over 10 million trained |
| Payments And Settlement Systems In India: Vision – 2019-2021 | Transform India into a cash-lite economy | In progress |
| Direct Benefit Transfer (DBT) and Aadhaar-linked Payments (ALP) | Reduce payment delays, curb corruption, and prevent leakages in the system | Implemented and in use |
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Challenges and the Need for Partnership
As India undertakes transformative changes towards a digital payment system, the challenges of maintaining integrity and security loom large. It is in this context that the need for partnerships between the government and industry becomes paramount.
