India Dominates Global Real-time Payments, Leads in Digital Revolution

India holds a commanding 48.5% share of the global real-time payments volume, according to a report released Monday by the Reserve Bank of India (RBI). The report also underscores India’s position as the world’s leading recipient of global remittances, totaling USD 115.3 billion in 2023.

The findings emphasize that global remittances, increasingly facilitated by mobile and digital platforms, reached USD 857.3 billion in 2023, with India as the largest beneficiary. The digital economy currently accounts for a tenth of India’s GDP and is forecasted to grow to a fifth by 2026, based on a decade of observed growth rates.

The RBI report details that digital payments in India have achieved a compound annual growth rate (CAGR) of 50% in volume and 10% in value terms over the past seven years, involving 164 billion transactions worth Rs 428 lakh crore in 2023-24. India is at the forefront of the digital revolution, embracing financial technology (FinTech), the India Stack, biometric IDs, and mobile connectivity initiatives.

The digital revolution is significantly enhancing India’s banking infrastructure and public finance management systems, encompassing both direct benefit transfers and tax collections. Vibrant e-markets are expanding. Nonetheless, cybersecurity remains a major concern, with a spike in security incidents from 53,117 in 2017 to 13,20,106 in 2023. Unauthorized network activities account for over 80% of these incidents.

Looking forward, the report identifies India’s digital technology infrastructure as a key growth driver, focusing on next-generation communication technologies like 6G and satellite networks, in addition to scaling up the 5G network to rural and underserved urban areas. Achieving self-sufficiency in chip manufacturing is crucial to harnessing the full potential of the digital revolution. (ANI)

(With inputs from agencies.)

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