Challenges and Opportunities for Digital Payments in Rural India: Impacts, Initiatives, and Policy Considerations

In this study, the factors that impact and support towards digital transactions in rural economy is reviewed taking stock of current trends, market analysis, readiness of the infrastructure and the stakeholder accountabilities, to gain insights to the critical success factors to be addressed. The economic progress of India is greatly influenced by its rural areas. Therefore, it is imperative to improve the digital payments model trends in rural India in light of the impact of demonetisation, emerging changes in ICT penetration, and ongoing digital initiatives for rural populations. It is imperative that the shift to digital payments, even in the rural economy, is accelerated in light of the advantages such as increased ease of doing business, potential to reduce the parallel economy, and transaction transparency. Some of the revolutionary developments in the recent past like launch of many digital wallets like – Paytm, Mobiwik, Free Charge etc. and government launching many UPI (united payment interface) solutions and BHIM app for smooth transition to digital payments, there are significant developments taking place.