India accounts for nearly half of the global digital payments: RBI report
Jul 29, 2024
New Delhi [India], July 29 : India holds 48.5 per cent share in the global real-time payments volume, according to the Reserve Bank of India (RBI) report released on Monday.
The report also highlighted that India leads the world in global remittances and received USD 115.3 billion in 2023.
"India is leading the world with a share of 48.5 per cent in global real-time payments volume. Global remittances that are increasingly being effected through mobile money and digital platforms are estimated to have increased to USD 857.3 billion in 2023, led by India (USD 115.3 billion)," said the report.
The digital economy currently makes up about a tenth of India's GDP and is expected to grow to a fifth of GDP by 2026, based on growth rates observed over the past decade.
According to the RBI, digital payments have recorded a compound annual growth rate (CAGR) of 50 percent in volume and 10 percent in value terms over the last seven years, involving 164 billion transactions worth Rs 428 lakh crore in 2023-24.
The report noted that India is at the forefront of the digital revolution, embracing not just financial technology (FinTech) but also the India Stack, which includes biometric identification, the unified payments interface (UPI), mobile connectivity, digital lockers, and consent-based data sharing.
The digital revolution is enhancing banking infrastructure and public finance management systems, covering both direct benefit transfers and tax collections. Vibrant e-markets are emerging and expanding their reach.
However, the report also pointed out that cybersecurity is a significant challenge due to the diverse nature of cyber threats targeting the digital financial infrastructure. Security incidents handled by the Indian Computer Emergency Response Team (CERT-In) increased from 53,117 in 2017 to 13,20,106 during January-October 2023. Unauthorized network scanning/probing/vulnerable services account for more than 80 per cent of all security incidents in India.
Looking ahead, the report noted that India's digital technology infrastructure will be 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 currently uncovered urban areas. Advancing these technologies will create new opportunities in underserved areas.
The report also stated that achieving self-sufficiency in chip manufacturing is crucial for realizing the full potential of the digital revolution.
