“Going digital is no longer an option, it is the default.”- Natarajan Chandrasekaran
Digital finance is the term used to describe the impact of new technologies on the financial and banking services industry. It includes a variety of products, applications, processes and business models that have transformed the traditional way of providing banking and financial services.
The advent of digitalisation in India has caused radical changes in the field of finance and banking sector with the government encouraging a cashless economy and India becoming one of the largest E-Commerce platforms. The flagship program of The Government of India, Digital India, indicates the importance of technology in a country that has practised conventional forms of conducting business for ages as financial transactions with a single click is becoming the new norm among the new generation of consumers.
According to the RBI, nearly 45% of the total population of India is conducting online transactions with the country's digital payment value expected to grow more than double to $135.2 billion by 2023. This indicates that over half of the country’s 1.3 billion population is online and has ease of access, usage of online services, and receives quality services. This large-scale digital onboarding has naturally put increased focus on doing financial transactions online, highlighting the importance of digital literacy in New India’s jump to digital finance.
Digital Financial Literacy is knowing and developing the necessary habits to effectively use digital devices for financial purposes. In simpler terms, it is the awareness about the digitization of financial transactions. To be more secure about the fund transfer or the safety of personal data, it is important to be aware of the principles of digital finances. Safety and Security are the two prime factors in accessing digital finance tools as they ensure that digitalisation doesn't give rise to financial foul play.
Successive attempts by the government through programs like the Digital India programme have empowered a large part of the population with basic digital literacy skills. The Ministry of Electronics and Information Technology (MeitY) recently undertook ‘Pradhan Mantri Gramin Digital Saksharta Abhiyan’ (PMGDISHA) to usher in digital literacy in rural India by covering six crore rural households (one person per household) by March 31, 2023. MeitY also advised all banks and payment service providers to undertake awareness campaigns for the promotion of secure payment practices and generate information related to security awareness.
Technology is acting as a catalyst in the government’s attempt to provide digital financial literacy by offering mobile applications, regional language modes and offering safe and secure transactions to the masses. However, there now exists a need to channelise this conceptual literacy into practical financial activities to enable the consumers to become a part of the larger digital economy. As the Indian economy shifts towards digitalisation, the participation of the whole country in digital finance will pave the way for a burst in economic growth in every sector. Eventually, this will provide freedom of choice to consumers as restrictions due to geographical boundaries or socio-economic background will fade. It will provide wind to the hopes of millions of Indians across the country.
Thus, it is imperative that awareness should be created of digital financial literacy among the general consumers for this will be one of the most common tools in the future. Imparting knowledge and resources about digital finance in the present times is an investment to ensure that, in the future, the public is aware of the advantages it has and how to use it effectively.
STAY SMART AND STAY SATARK !
Blog By ~ Achint Arora
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Informative 🔥🔥👏
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