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Graphic: Trends in digital finance

Use of digital financial infrastructure is growing

Somesh Jha 

Representative Image

Digital played a crucial role in in 2017, as it acquired a greater role after demonetisation, according to the Inclusive Finance India Report 2017, authored by M S Sriram of Indian Institute of Management, Bangalore, and published by ACCESS Development Service and SAGE Publications. Use of digital financial infrastructure is growing. With more investment by banks in the overall infrastructure, it will aid in financial inclusion, the report said. Business Standard takes a look at the trend observed over a recent period of time in digital finance Growth in and BHIM transactions Data The number of transactions and volumes of picked pace. But there were multiple problems observed in the acceptance of the concept such as inadequate incentives to use the application, call charges on mobile phones and inability to schedule payments Technology-enabled transactions Data Even as transactions are picking up, and (PoS) devices were still the commonly used transaction methods.

While transactions at PoS substantially went up, those at fell due to paucity of cash Mobile transactions DataThere has been an exponential growth in mobile phone-based transactions over the years. However, the digital divide between urban and rural areas is huge. While the number of telephone connections per individual till March 2017 stood at 1.6 in urban areas, it was 5.6 in rural areas.

Source: Inclusive Finance India Report 2017 — Authored by M S Sriram and published by ACCESS Development Service and SAGE Publications

First Published: Mon, December 11 2017. 01:17 IST