India Leads the World in Real-Time Payments and Remittances
According to a report by the Reserve Bank of India (RBI), India holds a 48.5% share in the global real-time payments volume. The country also leads in global remittances, receiving USD 115.3 billion in 2023.
Growth of Digital Economy
The digital economy currently makes up about 10% of India’s GDP and is expected to grow to 20% by 2026. Digital payments have recorded a compound annual growth rate (CAGR) of 50% in volume and 10% in value over the last seven years, involving 164 billion transactions worth Rs 428 lakh crore in 2023-24.
Embracing Digital Revolution
India is at the forefront of the digital revolution, embracing financial technology (FinTech) and the India Stack, which includes biometric identification, the unified payments interface (UPI), mobile connectivity, digital lockers, and consent-based data sharing. This revolution is enhancing banking infrastructure and public finance management systems, covering both direct benefit transfers and tax collections.
Challenges in Cybersecurity
However, cybersecurity remains a significant challenge. Security incidents handled by the Indian Computer Emergency Response Team (CERT-In) increased from 53,117 in 2017 to 13,20,106 during January-October 2023. Unauthorized network scanning and probing account for more than 80% of all security incidents in India.
Future Prospects
Looking ahead, India’s digital technology infrastructure will be a key growth engine. The focus is on next-generation communication technologies like 6G and satellite networks, alongside expanding the 5G network to rural and currently uncovered urban areas. Achieving self-sufficiency in chip manufacturing is also crucial for realizing the full potential of the digital revolution.
Doubts Revealed
Real-Time Payments -: Real-time payments are money transfers that happen instantly, so the money moves from one bank account to another right away.
Remittances -: Remittances are money that people send to their family or friends in another country. For example, if someone works in the USA and sends money back to their family in India, that’s a remittance.
RBI -: RBI stands for Reserve Bank of India. It is the central bank of India, which means it controls the money supply and interest rates in the country.
Digital Economy -: The digital economy is the part of the economy that is based on digital technologies, like the internet, mobile phones, and digital payments.
GDP -: GDP stands for Gross Domestic Product. It is the total value of all goods and services produced in a country in a year.
Cybersecurity -: Cybersecurity means protecting computers, networks, and data from being accessed or attacked by unauthorized people.
Communication Technologies -: Communication technologies are tools and systems that help people talk to each other, like mobile phones, the internet, and satellites.
Chip Manufacturing -: Chip manufacturing is the process of making tiny electronic circuits that are used in computers, mobile phones, and other electronic devices.
