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Over 8000 crore digital payment transactions reported during current financial year

Over 8000 crore digital payment transactions reported during current financial year

What is the news :

  • The government has said that more than 8000 crore digital payment transactions have been reported in the country during the current financial year.
  • Over the years, the digital payment transactions have grown multifold from over two thousand crore in 2017-18 to over five thousand crore in 2020-21.
  • Union minister of electronics and IT – Ashwini Vaishnav (Rajyasabha , Odisha)
  • Minister of State for Electronics and IT- Rajeev Chandrasekhar (Rajyasabha, karnataka)

Increase in digital Payments :

  • Digital Payments transactions have been steadily increasing over last few years, as a part of Government of India’s strategy to digitise the financial sector and economy.
  • Over the past four years, digital payment transactions have grown multifold from 3,134 crore in FY 2018-19 to 5,554 crore in FY 2020-21.
  • During current financial year ie FY 2021-22, the total number of 7422 crore digital transactions have been reported till 28th February, 2022.
  • Bharat Interface for Money-Unified Payments Interface (BHIM-UPI) has emerged as the preferred payment mode of the citizens and has achieved a record of 452.75 crore digital payment transactions with the value of Rs 8.27 lakh crore till 28th February 2022.
  • Covid-19 pandemic has established that digital payments enable access to healthcare as well through contactless payment modes like BHIM-UPI QR code in consonance with the “new normal” of social distancing.

Important :

  • Reserve Bank of India (RBI), in exercise of the powers conferred by the Banking Regulation Act, 1949, the Reserve Bank of India Act, 1934 and Payment and Settlement Systems Act, 2007, has issued the Master directions, namely, Reserve Bank of India (Digital Payment Security Controls) directions, 2021 to the Regulated entities (REs) including Scheduled Commercial Banks, Small Finance Banks, Payment Banks and Credit Card issuing NBFC (Non Banking Financial Company.
  • Further, digital payments are enabled through multi-factor authentication.
  • The key objectives of multi-factor authentication are to protect the confidentiality of payment data as well as enhance confidence in digital payment by combating various cyber-attack mechanisms, like, phishing, keylogging, spyware/ malware and other internet-based frauds targeted at REs and their customers.
  • A strong grievance redressal mechanism has been set up by the Government and RBI to address the grievances related to cyber financial frauds of the individuals, in a time bound manner.

Government in coordination with ecosystem partners are taking various initiatives for awareness of citizens for secure payment practices.  Some of the steps taken are given below: 

Initiatives of Ministry of Electronics & Information Technology

  • Pradhan MantriGramin Digital SakshartaAbhiyan (PMGDISHA):Ministry of Electronics & IT (MeitY) has undertaken “Pradhan MantriGramin Digital SakshartaAbhiyan (PMGDISHA)” to usher in digital literacy in rural India by covering 6 crore rural households (one person per household) by 31.03.2023.
  • MeitY advised all Banks and Payment Service Providers to undertake awareness campaigns for promotion of secure payment practices and generate information security awareness.

Awareness initiatives by RBI:

  • RBI conducted Financial Literacy Week (FLW)  between February 14-18, 2022 with the theme   “Go Digital, Go Secure” for creating awareness about (a) Convenience of digital transactions; (b) Security of digital transactions; and (c) Protection of customers.
  • RBI has advised Banks to conduct special camps through their Financial Literacy Centres (FLCs) and tailored camps for different target groups on banking, investment products suitable for post- retirement life, estate planning tools, bank operations for old/sick/incapacitated persons, awareness on Ponzi schemes and scams etc, amongst others.
  • Rural branches of banks are directed by RBI  to conduct one camp per month covering all the messages that are part of Financial Awareness Messages (FAME) booklet, which includes messages on consumer protection i.e. Mis-selling, Sachet portal, Grievance Redressal mechanism etc.
  • Centre for Financial Literacy (CFLs) have been set up at the block level to disseminate messages pertaining to Special facilities for the elderly and disabled customer, as prescribed by RBI, doorstep Banking Services for Senior Citizens and Differently Abled Persons and Awareness about digital banking.

Awareness initiatives by NPCI:

  • Training programmes are conducted by National Payments Corporation of India (NPCI), for creating awareness about financial literacy and digital payments in rural areas.
  • NPCI has recently undertook a one-week campaign from 1st February 2022, for creating awareness about secure payment practices, for the prevention of BHIM-UPI related frauds

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