After a long spat of criticism, demonetization managed to act as a game changer in India’s payment system. To be precise, India is expecting to reach a breakeven point in non-cash transactions against cash transactions, in the year 2023. Adding to the numbers will be the volume of digital transactions at 59% in the year 2025.
Let’s have an overall look at the regulatory framework of the demonetization mechanism. The journey of cybersecurity can be framed through the interesting acts underlined below:
• Information Technology Act(200)
• Information Technology Act Amendments(2008)
• Trade of national policies in electronics, IT, Telecom(2011)
• National Cyber Security Policy(2013)
• Watal Committee report by MoF(2016)
• Draft of Ministry of IT and Electronics (MeitY)- PPI Security rules (2017)
• Master Directions Prepaid Payment Instruments in India (2017)
India is still developing rules, policies and framework in the digital payment world for later developments like Establishment of Financial CERT (2018-2019), RBI Digital Payment Security Sub-Committees (2019), Data Privacy Law (2020), Protocol for e-Wallet Companies (2020) etc. These endeavors define the overall plan set out for demonetization and execution of the same.
Condition of the Service Industry & Cashless Economy:
The service industry is contributing nearly 60% of its GDP in India. The government of India has initiated a lot of digitalization projects already like Make in India, Skill India, BHIM and more. In fact, the government is also providing subsidies to encourage companies in promoting digital plans. Brands like IRCTC, MakeMyTrip, Yatra, OYO, Bookmyshow, GoIbibo, Paytm, etc. are accepting payments through digital mediums only. E-commerce companies like Amazon, Flipkart, Jabong, Myntra are also pushing this through with unstoppable discounts and offers if at all online payments are done. Most banks have built their app and website to facilitate all payment transactions successfully. Every service company (hotel, cab, ticketing, online shopping, air, bus, rail, financial, consultancy, etc.) is supporting the “Cashless India” campaign by incorporating digital payment system.
Read More: Top Trends in the Digital Payments World
Proper integration of technology, regulations, and company can transform India into “Digital”. By 2023, India is expecting to reach $1 trillion in the digital market by enhancing internet connectivity and penetration of mobile phones. This is the way to fuel the Indian payment landscape towards advancement. Most government initiatives like “Digital India”, BHIM, UPI, Aadhaar, “ Jan Dhan Yojana” have immensely helped as a catalyst. Entry of global players like Google, WhatsApp, Facebook, and PayPal are creating abundant opportunities for digitization, Fintech collaboration, and a cashless economy. This is the best blend of economic goals with personal development.