An Inclusive Future

- Niranj Sangal

Most of the population in metros and tier 1 and tier 2 cities altered their mode of payments and embraced the digital channel, post demonetisation. The adaptation was quick due to the easy availability of and access to technology. Numerous mobile wallets sprung up and the existing ones grew fourfold. On the other hand, the rural populace, especially those who did not have a bank account, were compelled to open one, and had to limit their spending for a while even if the need was absolutely important. The economy witnessed a cash shortage, and businesses and daily life took a hit nationwide.

There was an increase in credit and debit card payment transactions, electronic transfers, and e-wallets on the whole; a large volume of this was from the cities. However, this was not the case with rural areas that comprise over 60% of the country’s population. Though the government strongly endorsed a digital economy, it seemed a distant dream for many.

Present scenario

Today, in addition to prepaid payment instruments such as mobile wallets which are widely used and accepted across the country, the government has launched UPI (United Payments Interface), BHIM app, and AEPS (Aadhar Enabled Payment System) to facilitate, ease, and encourage the use of digital mode of payments. Simultaneously, banks too have introduced digital channels, and fintech companies have payment banks allowing users to instantly open digital accounts. In addition to these, India Post—with presence and reach even in the most remote areas of the country— is operating the India Post Payments Bank. However, even though significant developments are being made, there are still unexplored opportunities in rural areas when it comes to moving towards a digital economy.