ndia's digital ecosystem has undergone an enormous change in recent years. The progressive integration of government services into digital platforms has made grassroots delivery of those services swift and effective. With just one click, citizens can now access these programs and get the help they require in a matter of seconds. The Government of India has consistently increased the number of digital payment transactions as part of its aim to digitise the economy and financial sector, Furthermore, a great deal of work has been done to make financial inclusion a top priority as a vital national objective, guaranteeing that every person has access to financial services. Digital India has set a significant goal of attaining a status characterised by presence-less, paperless, cashless, backed with consent transactions. The Government of India has placed utmost importance on promoting digital payments, aiming to include every segment of the country's population within the formal framework of digital payment services. The ultimate vision is to ensure that all Indian citizens can access seamless digital payment facilities conveniently, affordably, quickly, and securely.There has been a technological revolution in recent years in India. As part of the Government of India's plan to digitise the financial industry and economy, the number of digital payment transactions has been steadily rising over the. past several years. More concentrated efforts have been made to advance financial inclusion as one of the nation's key national goals. One of, the key enablers at the centre of India’s transformed digital payment landscape is JAN Trinity- Jan Dhan, Aadhaar and Mobile. Launched in August 2014, Pradhan Mantri Jan- Dhan Yojana (PMJDY) is one of the biggest financial inclusion initiatives in the world. It contributes to providing universal banking services for every unbanked household. The main product of the Unique Identification Authority of India, Aadhaar, is a straightforward but efficient way to validate people and beneficiaries using their biometric data. Together, Jan Dhan accounts, Aadhaar, and mobile connections have contributed to building the groundwork for a Digital India, where citizens may access a wide range of government services directly and with greater convenience without the need for middlemen. The idea of digital India revolves around achieving faceless, paperless, and cashless status. To promote digital payments to strengthen the Indian economy, the government has been using various initiatives to bring each segment of the country under one- fold digitisation. India has experienced large-scale digital adoption between 2013 and 2018, triggered by both government action and market forces @ @ 870 million up from 55.8 million ‘Aadhaat-linked bank accounts 1.22 billion up trom 510 million people with unique biometric digital identities (Aadhaar) 292,748 sascranni 2018) functional Common Services Centres providing e-services? 98 million up from 6.5 million daily e-government transactions o 26.7 billion up from 249 million Aadhaar authentication transaictions? Source: Ministry of Electronics & Information Technology, Government of India560 million 294 million 200 million up from 238.7 million up from $0 million up from 30 million Internet subscriptions ‘Sovial media users WhatsApp subscribers © © 176.8 million 24.3 billion up from 40 million up from 2.5 billion e-commerce users annual digital payment transactions (digital wallets, net banking, or credit or Sebit card at point of sale) 1) Figies an 22nd Janay, 2019, 2 Common Servoes Gerires and Andhaar authentication varsactons data compared 10 2088 3 Digtal payments wansactons data fot January to Decembat 2018 compared to FY 2013-14 al ather fires for 2017/2018 compared t9 2013, Source: Ministry of Electronics & Information Technology, Government of India The Digital India program is a program of the Government of India (Gol) that was launched in July 2015 with the vision of transforming India into a digitally empowered nation and a progressive economy. Digital payment is one of its aspects that offers a faster and even more convenient alternative to the conventional payment system. This offers the convenience of avoiding long queues at banks or government to track and monitor all financial ‘Automatic Tailor Machines (ATMs) for money activities that are going on. This enables the requirements. With the arrival of digital currency, __ elimination of counterfeit notes and facilitates there's less risk involved in handling currency. better regulation of income taxes. During the Moreover, digital transactions help in controlling pandemic, digital payments emerged as a boon the circulation of black money by allowing the and enabled contactless and safe transactions. Total Number of Digital Transactions (2017-2023) saw os sss usr 2on i 1.06230 20460 nano a6 ss sera z — _ -_ = = 1 | 2017-18 2018-19 2019-20 2020-21, 2021-22 2022-23" mRs.Crore MUS Million Source: Press Information Bureau (PIB), Reserve Bank of india (RBI) Note: * December 2022, Digital payment modes considered are BHIM-UPI, IMPS, NACH, AePS, NETC, debit cards, credit cards, NEFT, RTGS, PPI and others.EHIMp Lie) During the last 5 years, various easy & convenient modes of digital payments, including Bharat Interface for Money-Unified Payments Interface (BHIM-UPI), Immediate Payment Service (IMPS), & National Electronic Toll Collection (NETC), have registered substantial growth and have transformed the digital payment ecosystem by increasing person-to- person (P2P) as well as person-to-merchant (P2M) payments. BHIM UPI has emerged as the preferred payment mode of the citizens & has recorded Rs. 803.6 crore (US$ 96.6 million) digital payment transactions with a value of Rs. 12.98 lakh crore (US$ 155.98 billion) in January 2023. The expansion of digital payments in India and the availability of various simple and practical digital payment options have made life easier for the populace and promoted financial inclusion, business, and economic growth. Contactless digital payment options like BHIM- UPI made it easier for people to distance themselves from one another and for businesses, especially small ones, to continue operating throughout the pandemic. Some of the benefits of using digital payments are as follows: It offers an instant and convenient mode of payment. Digital mechanisms like IMPS and BHIM-UPI allow money to be instantly sent to the beneficiary account, unlike cash. Additionally, by utilising the BHIM-UPI mode, a user can conduct a digital transaction through their phone by providing a virtual payment BEES address (email-like address) or their cell phone number, which is easy to recall. Payments are now easier owing to BHIM-UPI, which has made it possible to access various bank accounts with a single mobile app. Citizens can easily receive and make payments using their phones owing to digital payments, which provide anytime, anywhere access to accounts. Individuals who might have been put off by the time and expense of physically visiting a bank branch to conduct transactions can now easily access their bank account online and enjoy all the advantages of joining the official banking system and gaining financial inclusion. With the recent implementation of UP! 123PAY, feature phone users can now conduct digital transactions in assisted voice mode using UPI, promoting financial inclusion and digital transactions in rural regions. Unlike cash payments, digital payments automatically establish a user's financial footprint, thereby increasing access to formal financial services, including credit. Banks and other lending institutions can utilise digital transaction histories to make cashflow-based lending decisions for both retail lending and lending to businesses, including small businesses that may face difficulty in getting credit in the absence of verifiable cashflows. The Bharat Bill Payment System (BBPS) offers users a simple, accessible, and interoperable way to pay their bills using a variety of channels, including BHIM-UPI, mobile apps, Internet banking, and mobile banking. With BBPS, citizens can conveniently pay their bills at any time, from any location. Earlier cash payments were vulnerable to "ghost" (false) beneficiaries and "leakage" (payments that do not reach the recipient in full), especially when it came to government transfers of social security funds. Benefits are now sent via digital payment methods straight to the target beneficiary's account (direct benefit transfer).IBEX UPI Transations 10.73 Apr'i6 Apri? Apr't8_ prt mm Volume (in Milion) Source: Press Information Bureau (PIB) One product that has been dubbed revolutionary in the payment environment is. UPI. Since its launch in 2016, it has grown to become one of the most widely used digital transaction platforms in the nation. The National Payments Corporation of India (NPC!) created the immediate payment system known as UPI. It combines a number of banking functions, smooth fund routing, and merchant, payments under one roof, enabling numerous bank accounts into a single mobile application. Currently, considerably over 40% of all digital transactions in India are made using UPI. Small companies and street vendors have benefited as it makes bank-to-bank transfers, even for relatively small amounts, quick and secure. For migrant workers, it also makes swift money transfers possible. The technology is simple to use because it involves no physical effort and Ap'20—Apr’21—Apr22.—Apr'22.—Apr'22 == Volume (in Rs, Lakh Crore) enables money transfers with just the scan of a QR code. Because UPI makes it simple and contactless to do transactions, it has also proven to be a lifesaver during the COVID-19 outbreak. As a result, its use is growing quickly. BHIM-UPI has emerged as the preferred payment method among users. UPI has set a new record of processing over 9 billion transactions (worth US$ 179 billion) in May 2023. UPI accounts for 75% of the total retail digital payments in India. India has witnessed an unprecedented surge in the digital economy and specifically digital payments over the years. Digital payment methods that are easy to use and convenient, like Person-to-Person (P2P) and Person-to- Merchant (P2M) payments, have revolutionised the digital payment landscape. Examples of these methods include Bharat Interface for Money-Unified Payments Interface (BHIM-UP!), Immediate Payment Service (IMPS), Pre-paid Payment Instruments (PPIs), NACH, AePS, and National Electronic Toll Collection (NETC). These methods have experienced substantial growth. ACHIEVEMENTS OF DIGITAL INITIATIVES The government has started the Digital India plan to make India a knowledge-based economy and a society that is enabled by technology by ensuring digital access, inclusion,empowerment, and closing the digital divide. The plan is focused on three main areas of vision: digital infrastructure as a basic service provided to all residents, on-demand governance and services, and citizen empowerment through digital means. The objective is to guarantee that digital technologies enhance the quality of life for the population, grow the country's digital economy, and provide investment and job opportunities. The revolution has significantly shortened the gap between the people and the government. It has also helped in the transparent and corruption-free direct delivery of significant services to the recipient. India has become a world leader in utilising technology to improve the quality of life for its people as a result of this approach. The Digital India program is a broad initiative encompassing several programs from several Central Ministries and Departments as well as States and Union Territories (Uts). In order to promote employment opportunities and the spread of the Information Technology and Information Technology Enabled Services (ITES) industry in smaller cities and towns, the government launched the India BPO Promotion Scheme (IBPS) and the Northeast BPO Promotion Scheme (NEBPS) as part of the Digital India programme. These programmes offer financial support of up to Rs.1 lakh (US$ 1,201.74) per seat in the form of viability gap funding towards capital and operational expenditures, thereby encouraging the establishment of BPO and ITES operations. 246 BPO/ITES units have begun operations under IBPS and NEBPS, covering 27 States and UTs, and are directly employing over 51,584 people. Below is the status of some of the key initiatives undertaken by the Ministry of Electronics and Information Technology (MeitY) under the Digital India programme across the country: es * Aadhaar: It provides a 12-digit WN. biometric and demographic-based “AADHAAR” identity that is unique, lifelong, ‘online, and authenticable. It has over 135.5 crore (1.35 billion) residents enrolled in it. * Common Services Centres (CSC): Through Village Level Entrepreneurs (VLEs), CSCs are providing government and business services in digital mode in rural areas. It is offering over 400 digital services. As of now, 5.21 Lakh (0.52 million) CSCs are functional (including urban & rural areas) across the country, out of which, 4.14 Lakh (0.44 million) CSCs are functional at the Gram Panchayat level. There are 23,035 CSCs are functional in the State of Rajasthan, ‘out of which 18823 CSCs are functional at the Gram Panchayat level. * Digi Locker: This initiative provides an ecosystem with the collection of repositoriesand gateways for issuers to upload documents in the digital repositories. It has over 13.7 crore (137 million) users and almost 562 crore (5.62 billion) documents are made available through Digi Locker from 2,311 issuer organisations. * Unified Mobile Application for New-age Governance (UMANG): This creates an ecosystem which helps to provide government services to citizens through mobile. Over 1,668, e-services and 20,197+ bill payments are made available at UMANG. Reet ea eae ren ‘© E-Sign: These services contribute to facilitating the instant signing of forms/documents online by citizens in a legally acceptable form. Many applications that use UIDAI's OTP-based authentication services are utilising the services. All agencies issued more than 31.08 crore (310.8 million) e-signs, of which 7.01 crore (70.1 million) were issued by CDAC. * Meri Pehchaan: In July 2022, the National Single Sign-on (NSSO) platform called MeriPehchaan was launched to facilitate citizen's ease of access to government portals. A total of 4,419 services of various ministries/ states integrated with NSSO. * Digital Village: In October 2018, MeitY also launched the "Digital Village Pilot Project.” The initiative covers 700 Gramme Panchayats (GPs)/ Village, with at least one GP/Village per District in each State/UT. Digital health services, education services, financial services, skill development, solar-powered streetlights, Government-to-Citizen (G2C) and Business-to- Citizen (B2C) services are among the digital services provided. * National Rollout of e-District Mission Mode Project (MMP): At the district or sub- district level, e-District is a Mission Mode Project (MMP) that seeks to electronically deliver high-volume citizen-centric services. Currently, 709 districts in India have implemented 4,671 e-services. * Open Government Data Platform: It has been developed to facilitate data sharing and promote innovation over non-personal data More than 5.93 lakh (0.59 million) datasets across 12,940+ catalogues were published. The platform has facilitated 94.8 lakh (9.48 million) downloads. © E-Hospital/ Online Registration System (ORS): The Hospital Management Information System, or e-Hospital application, is used by hospitals for their internal workflows and procedures. At the moment, 557 hospitals ars nationwide have implemented ORS, and 753 institutions have been onboarded on e-Hospital. Over 68 lakh (6.8 million) appointments have been scheduled through ORS. * Jeevan Praman: The goal of Jeevan Praman is to digitise the entire life certificate application process for pensioners. The pensioner no longer needed to appear in person in front of the certification authority or the disbursing agency ‘owing to this initiative. Since 2014, more than 685.42 lakh (68.54 million) digital life certificates have been issued * Pradhan Mantri VA Gramin Digital Saksharta Abhiyaan (PMGDISHA): To promote digital literacy in iz. rural India, the governmenthas approved a new programme called the Pradhan Mantri Gramin Digital Saksharta Abhiyan (PMGDISHA), which will benefit 6 crore (60 million) rural families (one person per home). Out of the 6.63 crore (66.3 million) candidates who have enrolled, 5.69 crore (56.9 jon) have received training, and 4.22 crore (42.2 million) have received certification. © Future Skills Prime: Future Skills Prime is an initiative that MeitY and NASSCOM have started together. In 10 new and emerging technologies- augmented reality, virtual reality, blockchain, big data analytics, artificial intelligence, robotic process automation, cloud computing, social media, mobile, cyber security, and additive manufacturing/three-dimensional printing-the programme aims to reskill and upskill IT professionals. futureskills ——-prime A MeitY - NASSCOM Digital Skilling Initiative E-RUPI: It is a digital voucher which a beneficiary gets on the phone in the form of an SMS or QR code. It is a pre-paid voucher that ‘one can redeem at any centre that accepts it. e- RUPI is a one-time contactless, cashless voucher-based mode of payment that helps Users redeem the voucher without a card, digital payments app, or internet banking access. It isn’t a digital currency that the Reserve Bank of India is contemplating. Instead, it is a person or even purpose-specific digital voucher. The National Payments Corporation of, India (NPCI), which oversees the digital payments ecosystem in India, has launched e- RUPI, a voucher-based payments system to promote cashless transactions. 11 banks and NPCI have joined to facilitate e- RUPI transactions. They are Indian Bank, Indusind Bank, Kotak Mahindra Bank, Punjab National Bank, State Bank of India, Union Bank of India, Axis Bank, Bank of Baroda, Canara Bank, HDFC Bank, ICICI Bank, and Indian Bank. Pine Labs, Bharat Pe, BHIM Baroda Merchant IBEFS LAp PREPAID 0-VOUCHER. Pay, PNB Merchant Pay, and YoNo SBI Merchant Pay are the acquiring apps. More banks and acquiring apps are expected to join the e-RUPI initiative soon. -RUPI stands out from other digital payment methods in that it does not require the beneficiary to own a bank account. It guarantees a simple, contactless, two-step redemption procedure that doesn't ask for personal information to be shared. Another benefit of e-RUPI is that it can be used in locations without internet access or by people without smartphones because it can be operated on regular phones as well. e-RUPI is expected to play a major role in strengthening direct-benefit transfer and making it more transparent. Since there is no need for the physical issuance of vouchers, it will also lead to some cost savings. NCPI has tied up with over 1,600 hospitals where e-RUPI can be redeemed. In the coming future, the user base of e-RUPI is expected to widen, with even the private sector using it to deliver employee benefits and the Ministry of Micro, Small, and Medium Enterprises (MSMEs) adopting it for Business-to-Business (B2B) transactions.CHALLENGES & SOLUTIONS OF DIGITAL INITIATIVES Some of the major challenges involve disparities in digital infrastructure between urban and rural areas in India. While metropolitan cities enjoy high-speed internet and advanced connectivity, rural regions lack basic access, hindering their participation in the digital revolution. Another one is limited internet penetration, although India boasts a massive population, the penetration of the internet remains relatively low, especially in rural areas. This limited access to the internet restricts the population's ability to access essential services, educational resources, and economic opportunities. One of the major aspects include digital illiteracy which a significant portion of the Indian population still lacks. The ability to navigate and use digital devices and services is a crucial aspect of participating in the digital economy, and the absence of these skills hampers the country's progress. As digital adoption grows, so does the potential for cyber threats. India faces challenges related to data privacy, online security, and the protection of critical infrastructure from cyberattacks. The country's diverse population speaks multiple IBEFS languages, making it imperative to provide digital content and services in multiple languages to ensure accessibility for all. Such challenges can be solved and are being solved by various government initiatives. It includes rural internet connectivity to address digital infrastructure disparities and the government's investment in expanding high- speed internet connectivity to remote areas. Initiatives like the BharatNet project aim to provide broadband access to every village in India, which can be a crucial step in bridging the urban-rural digital divide. Various digital literacy programs are run to promote digital awareness among the population. The Digital Saksharta Abhiyan (DISHA) or National Digital Literacy Mission (NDLM) Scheme has been formulated to impart IT training. The government, in collaboration with private organisations, is working on the issue of digital illiteracy and spreading awareness about it. New frameworks are being developed to prevent cyberattacks and keep the privacy of individuals secure. THE ROAD AHEAD India's environment for digital payments has seen a dramatic change. The public hasresponded well to government initiatives and has demonstrated an impressive readiness to adopt new technologies. The Government of India is committed to making the nation a global leader in international payment systems and is working tirelessly towards this goal. The objective is to establish India as one of the world's most advanced and efficient payment markets and to guarantee inexpensive, universal internet and digital accessibility for al its residents, especially those who are currently underserved or without access. India intends to accomplish this goal in order to promote new digital ecosystems that can handle diverse social and economic issues in a variety of fields. This endeavour holds the potential to IBEFX. al establish a thriving digital economy, generate an economic value of up to USS 1 trillion by 2025, and position India as a global hub for digital innovation and production. In India where technology helps guarantee accountability and transparency while providing access to improved services for agriculture, health care, and education today, our vision of governance—providing services via mobile devices and guaranteeing universal access to internet services—is a reality. Faceless, cashless, and paperless governance is being ensured by the implementation of programs like Aadhaar, UPI, and Di groundwork for a strong, stable, and secure Digital india. o—— (6) ——~ 10