New Delhi . India is emerging as a world leader in digital payment technology due to the rapid expansion of the UPI network internationally. This information was given in a report of the Reserve Bank of India (RBI).
There were 16.6 billion transactions through UPI in October. Also, instant debit reversal during this period has been 86 percent, which was 77 percent in the same period last year.
RBI Deputy Governor Michael Debabrata Patra has said in the report that India's UPI is an openended system. In this, transactions can be easily done from one person to another or from person to businessman through a single application.
According to Patra, innovations in the digital credit landscape such as account aggregators, OCEN and financial services on ONDC have also contributed to increased productivity.
ONDC is working in more than 720 cities by March 2024. It has 49.72 million orders. Trade Receivables Discounting System (TREDS) bridges the estimated credit gap of approximately Rs 52.2 trillion of MSMEs by connecting them with banks and clients, thereby reducing funding costs by up to 2.5 per cent.
Patra wrote, “The value of finance invoices through TReDS has increased by more than 23 times. By October 2024, there are approximately 5,000 active fintechs involved in providing various financial and technology solutions to businesses, including MSMEs, helping businesses streamline their operations. “Helps to better manage and improve supply chain finance.”
In India, about 40 per cent of the rural population and 78 per cent of the total population aged 2030 years use the Internet, with about a third of the households purchasing consumables and services online.
The RBI Deputy Governor said India is uniquely positioned to open new avenues of growth with its Digital Public Infrastructure (DPI), a vibrant Information Technology (IT) sector and a growing youth population including one of the largest AI talent bases. .
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Image Credit: KhasKhabar.