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Experts estimate that by the year 2025, India will increase its share of digital transactions in the whole world to 71.7 percent. Most of the digital transactions that have taken place so far have been done through UPI, which was started by the Modi government in the year 2016.
If you want to get an idea of how fast the world is changing, then you can guess in many ways. The chain of this change includes Digital Payment, which was in a very limited scope in India till the year 2013-14. But since the coming of Narendra Modi’s government in 2014, it has registered an unprecedented increase. Before 2014, most of the transactions in India were done by cash, check etc. Although e-payment was present even during that time, but people used to use it very less. And if we look at the figures of 2013-14, India did only 220 crore rupees in e-transactions, which is a very small part of e-transactions all over the world.
Transactions in cash often encourage tax evasion. Because most of the merchants do not keep the account of the transactions done in cash or else they manipulate that account. At the same time, when the transaction is done through e-payment, then its full account is available. That’s why no one can manipulate it even if they want. Perhaps this was the reason that as soon as the Modi government stepped into the power of the Center, in the same way, it took its steps rapidly towards digital payments.
Big work done during PM Modi’s tenure
When Narendra Modi’s government was formed in 2014, he emphasized towards rapidly advancing the digital payment ecosystem in the country and tried to make it accessible to all sections of the society. The results of this effort have been surprisingly good, with digital payments being the most popular mode of transaction for Indians of all walks of life today. The biggest role in this was played by our smartphones, through which any person can make digital payments anywhere. Along with this, the Modi government opened more than 45 crore Jan Dhan accounts during its tenure, which further strengthened the digital payment system. Today there are strong options for digital payment like UPI, Rupay card. India now claims to be the world’s largest digital payments ecosystem in the last 10 years. If we look at the figures of 2020-21, India has done a transaction of Rs 5,554 crore through digital payment. Whereas if we look at the figures of 2021-22, it increases to Rs 7,422 crore.
India surpasses developed countries
As fast as India has progressed in the digital payment ecosystem, the developed countries of the world have not been able to grow as fast. In 2020 and 2021, India overtook countries like China, South Korea and the United States in online payments. In 2020, India did 25.5 billion real-time digital transactions compared to China’s 25.4 billion. In 2021, India did 48.605 billion real time online transactions. This was 2.6 times more than China. The figures for 2021 show that India accounts for 40 percent of the global real time online transactions.
India’s share will increase by 2025
Many experts estimate that by the year 2025, India will increase its share of digitally done transactions in the whole world to 71.7 percent. Most of the digital transactions that have taken place so far have been done through UPI (Unified Payment Interface), which was started by the Modi government in the year 2016. The value of these transactions was 1,098 billion in FY2018, which has increased to 68,629 billion in FY 2022. At present, 316 banks of the world are registered on the UPI platform. Looking at the figures of 2022, online transactions of more than Rs 5.58 billion have taken place in the month of April alone.
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