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Digital Public Platforms Driving India’s Financial Inclusion, Says Malhotra
RBI: Nearly 85% of digital payment transactions in India are conducted through UPI. The country can set an example for inclusive, secure, and scalable digital public platforms (DPPs). Reserve Bank of India Governor Sanjay Malhotra said this in Washington on Wednesday. Let's find out what he said next.
Almost 85% of digital payments in India are made through UPI. The nation can be a leader in inclusive, secure, and scalable digital public platforms (DPPs). Reserve Bank of India Governor Sanjay Malhotra made this comment on Wednesday.
Malhotra was speaking at the "Economic Resilience through Digital Public Platforms" event organized by the RBI on the sidelines of the World Bank and International Monetary Fund's annual meeting in Washington, DC, on Tuesday. He said, "DPPs have become a powerful catalyst for inclusive growth and innovation."
The RBI Governor stated, "The foundational platforms for digital identity (Aadhaar) and real-time payments (Unified Payments Interface - UPI) have successfully demonstrated how to build flexible, cost-efficient public service delivery systems at scale."
RBI Governor Malhotra also spoke about India's DPP ecosystem and its role in digitization and financial inclusion, especially in government transfer payments. He emphasized that in the true spirit of "Vasudhaiva Kutumbakam," India is fully committed to international cooperation on such platforms to accelerate digital transformation.
He said, "Our guiding principle has been to build such platforms in the public sector as a public good, with appropriate safeguards and without any profit motive."
He further stated that India is an example of inclusive, secure, and scalable DPPs. Public and private sector entities can leverage these platforms to rapidly develop applications in credit, health, social security, agriculture, and many other areas. Regarding payment systems, Malhotra said that UPI is an important digital public platform. UPI has transformed the payments landscape as it enables efficient real-time payment transfers between bank accounts.
The Governor said, "Today, approximately 85 percent of digital payment transactions in India are conducted through UPI. Nearly 20 billion transactions are processed using UPI every month, amounting to over US$280 billion." Malhotra further stated that UPI is a powerful tool that is accelerating financial inclusion.
