Initiatives taken by Government for Digitalisation in India

Initiatives taken by Government for Digitalisation in India

2016 was a roller coaster year for Fintech Startups & Financial Services in India and innovation in this particular industry shows no sign of slowing down and continues its march of progress to disrupt the traditional banking method.

In 2016, Investments in Fintech is almost doubled. Lending startups such as peer to peer lending in India, mico-loans, crowdfunding and even capital provision for SME's saw three times more inflow of funds, despite the announcement of demonetisation in November 2016.

Many platforms were introduced last year such as UPI (United Payments Interface), Aadhaar based e-KYC Exchange, digital signatures etc. 

What is United Payments Interface?

United payment interface also known as UPI, launched by National Payment Corporation of India (NPCI) allows you to make payments using your mobile phone as the primary device for transactions, through the creation of a “virtual payment address”.

In Ex-governor Raghuram Rajan’s words “The UPI is WhatsApp moment for banking”. UPI is the most advanced method of all the digital payments

Benefits of UPI

  1. Cheapest way to transfer funds: If you choose UPI as the mode of transferring funds to any other bank account, it will cost you less than 50 paisa per transactions.
  2. UPI makes all small transactions feasible: The low-cost transaction had it feasible for all small shop owners and consumer as well.
  3. UPI does not require bank/card details for fund transfer: As mentioned above it create a virtual payment address which is quite similar to your email ID. You just need to give that virtual payment address.
  4. More Secure than any other mode of digital payment: In the payment through UPI, you never share your bank/card details hence no one can utilize your bank details for their benefit.
  5. Instant transfer of amount: It is based on IMPS platforms. Hence you can easily transfer the amount instantly.
  6. Access Multiple Accounts through one UPI appYou have a liberty to choose any UPI app and easily manage multiple bank accounts through only one single app.


What is Aadhaar e-KYC?

It is a paperless process wherein the identity and address of the customer are verified electronically through aadhaar authentication. It is can use as an alternative to current KYC (Know Your Customer) which is done on the basis of physical photocopies of the original documents. 

Benefit of Aadhaar e-KYC in loan Processing

Using Aadhaar e-KYC, delays in loan disbursement due to physical address verification and attestation verification can be brought to a minimum. Thereby ensuring faster processing and issuance of the digital certificate.

Mobile verification and email verification is not required in the case of Aadhaar e-KYC.

Platforms such as Rupaiya Exchange have implemented Adhaar based e-KYC service to enable ease of use of financial services and make regulatory processes simpler.