As the year of digital revolution in banking comes to an end, what lies ahead?
2017! The year began with cash crunch post demonetisation that ultimately led to a year of digital banking and payments breakthrough which was followed by proliferation of digital payment channels, and players including the UPI, BHIM, BharatQR and Google Tez, Samsung Pay and WhatsApp capitalizing on the growing mobile and internet financial services.
The government withdrew 86 percent of the currency notes in circulation — (old 500 and 1000 rupee denomination).
This has changed the way consumers bank and make payments with the need to adopt and the rise in awareness of the usage of cashless payment modes. The government thronged on the benefits of demonetisation away from the originally stated benefit of tiding over black money in the country.
The government is pushing towards a cashless economy with various programs such as Make in India, Digital India and Skill India — which is expected to spur the growth of financial technology or the fintech industry. Digital payments are expected to grow from 5 percent of GDP now to 20 percent of GDP in the next 10 years, experts suggest.