New Delhi, July 29, 2024 — According to a recent report by the Reserve Bank of India (RBI), India has emerged as a global leader in digital payments, accounting for nearly half of the world’s real-time payment transactions. The report, released on Monday, also highlighted India’s dominant position in global remittances, with the country receiving USD 115.3 billion in 2023.
Dominance in Digital Payments
India’s share in global real-time payments volume stands at an impressive 48.5%, as per the RBI report. This significant milestone underscores India’s rapid adoption and integration of digital financial technologies. Over the past seven years, digital payments in India have witnessed a compound annual growth rate (CAGR) of 50% in volume and 10% in value terms. In the fiscal year 2023-24 alone, the country recorded 164 billion transactions worth ₹ 428 lakh crore.
Leading in Global Remittances
In addition to its prowess in digital payments, India continues to lead in global remittances. The RBI report indicates that global remittances, increasingly processed through mobile money and digital platforms, amounted to USD 857.3 billion in 2023. India, with USD 115.3 billion in remittances, is at the forefront of this trend, reflecting the significant contribution of its diaspora.
Growth of the Digital Economy
The digital economy currently comprises about 10% of India’s GDP, with expectations to double to 20% by 2026. This growth trajectory is attributed to the widespread adoption of the India Stack, which includes biometric identification, the unified payments interface (UPI), mobile connectivity, digital lockers, and consent-based data sharing.
The digital revolution in India is not limited to financial technology (FinTech). It is enhancing banking infrastructure, public finance management systems, direct benefit transfers, and tax collections. Vibrant e-markets are also expanding their reach, contributing to the digital economy’s growth.
Challenges in Cybersecurity
Despite these advancements, the report also flags significant challenges in cybersecurity. The Indian Computer Emergency Response Team (CERT-In) handled a staggering 13,20,106 security incidents from January to October 2023, up from 53,117 in 2017. Unauthorized network scanning, probing, and vulnerable services account for over 80% of these incidents, highlighting the need for robust cybersecurity measures.
Future Outlook
Looking ahead, the RBI report emphasizes the critical role of India’s digital technology infrastructure as a key growth engine. The focus is on next-generation communication technologies like 6G and satellite networks, alongside expanding the 5G network to rural and underserved urban areas. Achieving self-sufficiency in chip manufacturing is also deemed crucial for realizing the full potential of the digital revolution.
Conclusion
India’s leadership in global digital payments and remittances is a testament to its innovative financial ecosystem and the government’s efforts to promote digital inclusion. As the country continues to advance its digital infrastructure and address cybersecurity challenges, it is poised to further consolidate its position as a global digital powerhouse.
