Nation at forefront of digital revolution, fintech speeding payments: Reserve Bank of India
- IBEF
- November 14, 2024
According to Deputy Governor of the Reserve Bank of India (RBI), Mr. Michael Debabrata Patra, India is leading the digital revolution, with financial technology driving the growth of digital payments. He highlighted that vibrant e-markets are emerging, and the digital economy contributes to about a tenth of India’s Gross Domestic Product (GDP). Based on the growth rates of the past decade, it is expected to account for a fifth of GDP by 2026. He also emphasised that India’s digital public infrastructure (DPI), thriving information technology sector, and youthful population, including one of the largest artificial intelligences (AI) talent pools, position the country to unlock new growth opportunities.
He further outlined how digitalisation is transforming Indian finance, with data from surveys showing that 75% of Indian banks now offer online account opening, digital Know Your Customer (KYC) services, and doorstep banking. Additionally, 60% provide digital lending, 50% offer payment aggregator services, and 41% have adopted chatbots. He also pointed to significant productivity gains from digitalisation, including a saving of 14,500 person-days monthly, a 25-30% reduction in customer acquisition costs, and a reduction in paper usage by 84 tonnes. India is also collaborating with international organisations on initiatives like Project Nexus and mBridge to explore global open finance frameworks. Under India’s G20 Presidency, the Global Digital Public Infrastructure Repository has been launched to share key lessons from the digital experiences of G20 members. The RBI focuses on digital financial inclusion, customer protection, cyber security, and sustainable finance.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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