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Digital is the aspiration but brick and mortar is the reality
August 04, 2023
In a span of just six years, India, primarily a cash-based economy, has become a leader in the world in real-time digital payments, accounting for almost 40 per cent of all such transactions. Digital payments across the country registered a growth of 13.24% in a year through March 2023, as per the RBI.
India has one of the fastest-growing fintech landscapes in the world, driven primarily by the advancement in the digital payments segment. A recent report by PhonePe and Boston Consulting Group concluded that India’s digital payments market will more than triple from $3 trillion to $10 trillion by 2026.
India’s fintech revolution rolls on as it now plans to introduce the digital rupee. Last month, Punjab National Bank announced the launch of a virtual branch, PNB Metaverse.
PNB Metaverse will deliver a unique experience of exploring the bank’s products and services such as bank deposits, retail/MSME loans, digital products, women/senior citizens, ‘Do It Yourself’ and government flagship schemes, PNB said in a statement. The branch will offer an immersive 3D experience to customers who will perform traditional banking activities through their digital avatars.
Government think-tank Niti Aayog said last month that India has a technology stack to facilitate digital banks and there is a need for creating a regulatory framework for promoting this. The report highlighted the promise that full-stack digital banks hold as a potential solution for the persistent policy challenge of credit deepening. They are the next stage of financial inclusion. Digital banks could be another frontier in Indian fintech, but the reality of old-style banking still persists in large swathes of rural and semi-rural India.
Important Links:
- 4-IN-1 Professional Diploma in Banking, Financial Services & Insurance (PDBFSI): https://ask.careers/courses/4-in-1-professional-diploma-in-banking-financial-services-insurance-pdbfsi/
- Mumbai: https://ask.careers/cities/mumbai/
- TSCFM: https://ask.careers/institutes/tscfm/
