(Image source from: Freepik.com)

The Reserve Bank of India's report, released on Monday, revealed that India dominates the global real-time payments arena with a sizable 48.5 percent share. Additionally, India received USD 115.3 billion in remittances in 2023, leading the international market. The country's increasing influence is evident, as global remittances, often facilitated by digital platforms, tower at USD 857.3 billion, with India at the forefront. The digital sector currently constitutes roughly 10 percent of India's GDP, a figure anticipated to climb to 20 percent by 2026. Impressively, digital payments have seen a substantial compound annual growth rate (CAGR) of 50 percent in volume and 10 percent in value over the past seven years. In 2023-24 alone, a staggering 164 billion transactions, valued at ₹ 428 lakh crore, occurred, as per the RBI's data.

The rise of digital technology is revolutionizing the way banks and public finance systems operate, enabling direct transfers of benefits and tax collections. E-markets are thriving, but the spread of cyber threats poses a major challenge to financial security. Cyber incidents managed by CERT-In surged from 53,117 in 2017 to 1,320,106 by January-October 2023. Unauthorized network scanning and vulnerabilities account for over 80% of security breaches in India. Future growth hinges on improving digital infrastructure, focusing on cutting-edge technologies like 6G and satellite networks, and expanding 5G to rural and underserved urban areas. Developing chip manufacturing capabilities locally is also crucial for maximizing the potential of digital advancements.