How is Financial Infrastructure evolving in India in the Digital Era?

We are in the era of globalisation, which makes companies rely on digitisation, to carry out the transactions in digital form. Digitisation makes the transactions simpler and safer as well.

India has also joined the digitisation now. Digital transactions and digital payments in India received the much-needed boost up since the Union Government announced demonetization.

The financial transactions in India have increased over the past three years and the Digital India campaign started by the Centre encouraged the normal public to use the do digital payments for their day-to-day uses.

Even after the rise in online transactions, people still have a few doubts over the security in online transactions. Users always raise several questions about the security and reliability of these transactions.

Notably, 2020 stood as a crucial period for India in terms of online transactions. With the nationwide lockdown forcing the Indians to confine to their homes, the transactions have increased rapidly.

The ACI Worldwide predicted that, by 2025, digital transactions will be the leading mode of transactions with 71.7 p.c, while the cheques and money quantity will stay at 28.3 p.c.Electronic payment and instant payment will be increased by 2025, ACI worldwide said.

Digitized financial infrastructure is the key to digital payments in the country. The infrastructure is getting the required help from banks, the government, tech firms, and the concerned regulatory bodies.

Following the rise in digitation transactions that offer the confidentiality of the users, the online retail sites are announcing offers so that the customers can make transactions online. As a result, the online retail business saw a growth of 40 percent in 2020.

On the other hand, India has a lot of work to do to stay on top of the business so that the country's financial infrastructure can be evolved. To create awareness of online transactions, the government should join hands with financial institutions.
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