Digital Rupee making financial inclusion a reality

Propelled by the increasing availability of low-cost smartphones and high-speed connectivity, India is digitising faster than many mature and emerging economies. Aadhaar-enabled payment system (AePS) has enabled banks and payment companies to service poor and migrant workers.

With the help of AePS and over 47 crore Jan Dhan accounts opened across the country, the government could make cash transfers to the beneficiary accounts directly through simple biometric identification methods.

UPI has simplified and democratised payments and offers friction-free payment solutions to all the stakeholders. It is the world’s top performing digital payment interface that is dominating the world’s payment system, having processed transactions worth $940 billion that is equivalent to 30% of India’s GDP.

Digital rupee launched on December 1, 2022 is yet another exciting step in the direction of speeding up cashless transactions. As a currency in digital token form that is based on blockchain technology, unlike traditional digital transactions such as UPI and Paytm or Google Pay, digital rupee is a new payment method that is unique as it is a legal tender.