An overview of India’s digital payments infrastructure
India already has a comprehensive digital payments infrastructure in place that can be accessed by a majority of the population, however, in order to maximize its capacity and reach more people, greater awareness is essential. That is why digital payments awareness week (DPAW) is of prime importance.
For instance, the Bharat Bill Payment System (BBPS) has revolutionized the way bills are paid, by completely shifting from using cash or cheque to a more efficient digital payment process where all major payments can be integrated on a single platform. On the other hand, the National Electronic Toll Collection (NETC) System has revolutionized the way toll payments are made, allowing for a seamless transition to cashless payments. Moreover, The National Automated Clearing House (NACH) system has also revolutionized Government Direct Benefit Transfers (DBT), allowing for quick and secure digital payments.
Why is digital payments awareness week important for India?
Embracing digital transactions in India would dramatically reduce the costs and risks of handling cash and make it easier to access online transactions with full visibility. Therefore, the need for digital payment awareness among citizens is crucial to progress towards a digital economy. The Digital Payments Awareness Week (DPAW) is commemorated every year to promote the adoption of digital money transfer across India.
According to the report released by the Governor of RBI, since December 2022, Indian payment systems have been processing over 1000 crore transactions every month which indicates a remarkable increase in the country’s digital economy with cashless payments. However, despite the rapidly shifting trend towards digital payments, a recent survey across India involving 90,000 citizens revealed that only 42% of those surveyed have adopted a digital payment process.
What are the goals of the digital payments awareness week campaign?
The theme of Digital Payments Awareness Week (DPAW) 2023 is to “Adopt digital payments and also teach others”. In order to achieve the goal, banks and digital payment companies are planning promotional campaigns to educate citizens about the existing digital payment services. Moreover, as part of the ‘Jan Bhagidari’ (people’s participation) events, Regional Offices of the RBI will also be involved in outreach initiatives. Also, in order to commemorate 75 years of independence, the Reserve Bank has launched a ’75 Digital Villages’ initiative which will provide access to secure digital payments by collaborating with Payment System Operators.
How can the logistics industry benefit from digital payments?
The logistics sector is a complicated network of owners, fleet managers, truck drivers, vendors and customers who all rely on payments for various expenditures ranging from administrative expenses to operational costs or delivery charges. Therefore, streamlining payments in transportation and logistics can be tedious, yet absolutely essential. In order to counter this challenge, adopting a digital payment process or in other words, cashless payments will be the ideal solution. Digital money transfer not only gives you a more detailed and comprehensive overview of your expenditures, but also safeguards against any unauthorized transactions.
There are a number of digital payment companies that can streamline transactions in logistics, however it is important to find an integrated platform for payments in logistics. For instance, Axlerate is a Fintech company focusing on the logistics ecosystem that enables digital payments and seeks to unify all financial information and transactions through a single platform.
Let’s Wrap Up!
In India, transitioning to digital payments would not only significantly reduce the costs and risks associated with handling cash but also offer better visibility. Though the country has a comprehensive digital payments infrastructure that is accessible, increased awareness is necessary to facilitate the adoption of digital money transfer. In order to achieve this goal, the digital payments awareness week (DPAW) is commemorated every year with the aim to help citizens transition to a digital payment process. While many banks and digital payment companies streamline transactions, it is important to find an integrated digital payment platform.
Axlerate is a unified platform for Logistics management, payments and services. Our solutions help to simplify tolls, fuel purchases, fleet expenses, loans, insurance, escrow, payments, truck booking, fleet management and the buying and selling of logistics products and services.
