THE INDIAN DIGITAL PAYMENT SYSTEM'S ROLE IN PROMOTING FINANCIAL INCLUSION

Abstract

Digital payments have rapidly replaced traditional physical currency transactions in India over the last five years. The volume of transactions through digital payments stood at 18626 crores. India is currently a frontrunner in implementing large-scale digital payments with a variety of innovative instruments. This chapter focuses on outlining the significance of India’s digital payment system in promoting financial inclusion. The continuous advancement of technology and collaborative efforts from different stakeholders provide optimism for a future where all citizens, regardless of their location, can actively engage in the formal financial system. Various indicators show that digital payments allow the government to significantly promote financial inclusion.