Digital Payments Utsav 2023: Financial Inclusion
The importance of digital payments is quite evident at present in India. Particularly after the demonetization drive in 2016, the government's push towards a cashless economy and the rise of affordable internet access has contributed to the growth of digital payments.
However, India is a country with a large population, and despite its economic growth in recent years, financial inclusion remains a significant challenge. There are several hurdles that come in the way of financial inclusion in India and NPCI has come a long way in overcoming those hurdles so far.
Role of NPCI in Increasing Financial Inclusion
The National Payments Corporation of India (NPCI) was established in 2008 as a not-for-profit company under the guidance of the Reserve Bank of India (RBI). Its main objective was to provide a robust payment infrastructure in India that would allow for easy and secure transactions. Since then, NPCI has introduced several payment systems that have revolutionized the way people transact.
(NPCI) has played a crucial role in promoting financial inclusion by providing innovative payment and settlement solutions including Unified Payments Interface (UPI), Aadhaar Enabled Payment System (AePS), Bharat Bill Payment System (BBPS), National Automated Clearing House (NACH), and the Immediate Payment Service (IMPS) to people across the country.
NPCI has played a significant role in promoting financial inclusion in India by introducing innovative payment systems that have made it easier for people to access banking services. NPCI’s efforts have helped bridge the gap between the unbanked and banked population and have created a more financially inclusive society.
Digital Payments Utsav 2023
To further promote and encourage the use of digital payments, the National Payments Corporation of India (NPCI) has announced its ambitious "Digital Payments Utsav" campaign, scheduled to run from February 2023 to October 2023. The honorable Minister for Electronics & Information Technology (MeitY), Communications and Railways, Shri Ashwini Vaishnaw launched the Digital Payments Utsav on 9 February 2023 and gave a way to commence a series of events to be covered under the campaign.
The campaign will focus on educating people about the benefits of digital payments, including the convenience, speed, and security they offer. The campaign will also highlight the importance of financial literacy and encourage people to learn more about managing their finances. The Digital Payments Utsav campaign is a welcome initiative that has the potential to drive meaningful change in the way people make payments in India.
The Digital Payments Utsav is said to have several events organized across the country with a major focus on G20 Digital Economy Working Group (DEWG) event cities, namely Lucknow, Hyderabad, Pune, and Bengaluru.
BANKIT and Its Role in Financial Inclusion
In recent years, financial inclusion has become a critical issue in many countries around the world. Unfortunately, there are still many individuals and communities who lack access to basic financial and digital banking and payment services.
The reasons for a low level of financial inclusion are many-
1- Lack of Awareness and Financial Literacy- One of the biggest hurdles to financial inclusion is the lack of awareness and financial literacy among the people.2- Lack of Access to Banking Services like bank branches and ATMs- Despite the government's efforts to increase the number of bank branches and ATMs in rural areas, there are still many villages in India where people do not have access to banking services.
3- High Cost of Financial Services- The high cost of financial services is another significant hurdle to financial inclusion in India. Banks and other financial institutions often charge high fees for their services, such as ATM withdrawals, money transfers, and loan processing.
4- Lack of Trust in Financial Institutions- Many people in India, particularly those in rural areas, do not trust banks and other financial institutions. They have had bad experiences in the past, such as being cheated or not getting the services they were promised.
5- Digital Divide- India has made significant progress in digital infrastructure in recent years, but there is still a digital divide between urban and rural areas. Many people in rural areas do not have access to the internet, smartphones, or other digital devices, which makes it difficult for them to use digital financial services such as mobile banking and digital wallets.
This lack of financial access can have significant negative impacts on individuals and communities, including hindering economic growth. Fortunately, several initiatives are being undertaken to increase financial inclusion, and one of the most promising initiatives taken is by BANKIT.
BANKIT believes that as we move towards a more digital and cashless society, people must equip themselves with the knowledge and tools to transact securely and efficiently. As a leading fintech company, BANKIT understands the importance of innovation and technology in the financial sector.
BANKIT, with its digital employment opportunities, encourages and supports financial inclusion in India. BANKIT works on a unique working model called the "Agent Model". In this model, BANKIT provides employment opportunities to local shop owners and gives them the status of BANKIT Agents. These BANKIT Agents have their presence in every state of India at present. Encouraging and supporting the employment prospect of local shop owners, BANKIT is also enabling them to become digitally empowered, because of which, they can help the people of their neighborhood in enjoying digital banking, financial, and payment services.
BANKIT also functions as one of the top-notch API Service Provider companies in the country. Huge businesses after integrating with BANKIT as an API partner for various services like Domestic Money Transfer (DMT), AePS (Aadhaar-enabled Payment System), CMS (Cash Management System), and PG Services, generate further digital employment opportunities for people who want to start a livelihood. All this collectively enhances the level of financial inclusion in the country. Therefore, BANKIT looks forward to the next level of development that Digital Payments Utsav 2023 is going to bring to the lives of a lot of Indian citizens.
The Digital Payments Utsav campaign aims to bridge this gap and bring more people into the digital payment ecosystem, and as a FinTech company, BANKIT is committed to supporting and joining the campaign.
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