India holds a significant 48.5% share in the global real-time payments volume, according to a report released by the Reserve Bank of India (RBI) on Monday. The report underscores India’s leadership in global remittances, receiving $115.3 billion in 2023.
The RBI report highlights the exponential growth in digital payments and the country’s pivotal role in global financial technology advancements. “India is leading the world with a share of 48.5% in global real-time payments volume. Global remittances, increasingly conducted through mobile money and digital platforms, are estimated to have risen to $857.3 billion in 2023, led by India ($115.3 billion),” the report states.
The digital economy now constitutes about one-tenth of India’s GDP, with expectations to double to a fifth of GDP by 2026, based on the growth rates observed over the past decade.
Digital payments in India have shown remarkable growth, with a compound annual growth rate (CAGR) of 50% in volume and 10% in value terms over the last seven years. In 2023-24 alone, there were 164 billion transactions worth Rs 428 lakh crore.
The report highlights India’s leading position in the digital revolution, not only in financial technology (FinTech) but also in the broader India Stack, which includes biometric identification, the unified payments interface (UPI), mobile connectivity, digital lockers, and consent-based data sharing. These advancements are significantly enhancing banking infrastructure and public finance management systems, impacting both direct benefit transfers and tax collections. Additionally, vibrant e-markets are emerging and expanding their reach.
— ReserveBankOfIndia (@RBI) August 8, 2024
Despite these advancements, cybersecurity remains a significant challenge due to the diverse nature of cyber threats targeting India’s digital financial infrastructure. Security incidents handled by the Indian Computer Emergency Response Team (CERT-In) surged from 53,117 in 2017 to 1,320,106 during January-October 2023. Unauthorized network scanning, probing, and vulnerable services account for over 80% of all security incidents in India.
Looking forward, the RBI report emphasizes that India’s digital technology infrastructure will be a key growth driver. The focus is on next-generation communication technologies like 6G and satellite networks, alongside expanding the 5G network to rural and currently uncovered urban areas. Advancing these technologies will create new opportunities in underserved areas.
Furthermore, the report stresses the importance of achieving self-sufficiency in chip manufacturing to fully realize the potential of the digital revolution.
