India Embraces Cashless Revolution Over the Past 11 Years: FM Nirmala Sitharaman
Why in News?
- Finance Minister Nirmala Sitharaman highlighted India’s significant strides toward a cashless economy—with UPI accounting for 45% of global digital payments and over 43 crore digital transactions monthly—during public addresses showcasing the nation’s digital payments boom.
Important Key Points:
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UPI’s Global Dominance:
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UPI now drives 45% of global real-time digital transactions, demonstrating India’s leadership in fintech innovation.
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Monthly Transaction Milestone:
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Over 43 crore digital transactions occur each month in India, reflecting rapid adoption across demographics.
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Formalisation of the Economy:
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Digital payments have spurred financial formalisation—UPI transaction values jumped 121% in volume, 115% in value from FY21 to FY23.
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Inclusive Impact:
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Digital systems facilitated pandemic-era benefit transfers directly to citizens’ bank accounts—even in remote villages—without reliance on cash.
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Infrastructure Boost & Security Focus:
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The rise in digital finance is supported by the “India Stack” digital public infrastructure. Banks are encouraged to use UPI data for better services, risk mitigation, fraud detection, and opensource innovation.
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