Connecting the currents of digital finance

India's telcos are building the invisible pipes that keep digital payments, inclusion, and innovation flowing across the nation's financial ecosystem.

- PRATIMA HARIGUNANI

The word currency must have something to do with current.

The value of both water and money lies in how they flow—swiftly, seamlessly, and everywhere. Without motion, both lose their worth. And like water, money needs a sturdy system of wells, tanks, pipes, and taps to do what it is meant to do— flow freely and reach far.

This has never been truer than now, when transactions have shrunk to the swipe and speed of a thumb. The invisible plumbing beneath must work harder than ever to keep pace—and India’s telcos are doing precisely that.

TELCOS WRITE INDIA’S NEW DIGITAL BLUEPRINT

Communication costs have dropped by about 33% annually, while processing and storage costs have each fallen around 30%. This has made India one of the most affordable data markets in the world—thanks mainly to the telecom sector's relentless expansion and innovation.

“Telecom networks have driven more than 120% mobile penetration and over 60% smartphone penetration in India,” observes Rajashekara V Maiya, VP and Global Head of Business Consulting, Infosys Finacle. “The Jan Dhan initiative has brought over 450 million customers into the formal banking system. Meanwhile, the India Stack—with its faceless, paperless, and cashless framework—has catalysed open banking and UPI payments. Add to those initiatives like the Unified Lending Interface (ULI), Open Credit Enablement Network (OCEN), and ONDC, and we are witnessing one of the largest financial inclusion programmes globally—underpinned by telecom and digital infrastructure.”

A recent IMF note echoes this view, stating that mobile networks are the backbone of India’s digital payments revolution, led by UPI. Shikhar Aggarwal, Chairman, BLS E-Services, reinforces the point: UPI has made payments quick, secure, and accessible, driving inclusion across individuals and small businesses.”