World Bank is astonished on UPI DBT Jan Dhan Accounts of India
[ad_1]
World Bank impressed by UPI
According to a World Bank document, UPI transactions worth almost 50% of India’s nominal GDP have taken place in the last financial year. Digital payment infrastructure has almost eliminated banks’ expenditure on new customers. It added that using DPI has reduced the customer on-boarding cost of banks in India from $23 (about Rs 1,900) to $0.1 (about Rs 8).
“UPI has seen widespread adoption, benefiting from its user-friendly interface, open banking features and private sector participation,” the report said. The UPI platform has gained immense popularity in India; In May 2023 itself, there were 9.41 billion transactions, which were worth about Rs 14.89 lakh crore. The total value of UPI transactions for FY 2022-23 was about 50% of India’s nominal GDP.’
India gets huge savings from DBT
The report notes that India has leveraged DPI to build the world’s largest Direct Benefit Transfer (DBT) infrastructure over the past decade. The report says, ‘This initiative facilitated transactions of $ 361 billion (about Rs 30 thousand billion) directly into the accounts of beneficiaries through 312 major schemes from 53 central ministries. By March 2022, this has led to a total saving of $33 billion (about Rs 2,738 billion), which is equivalent to about 1.14% of GDP.’
World Bank praised in G20 document
The World Bank has prepared the GPFI document as an implementing partner of the Global Partnership for Financial Adjustment (GPFI). It includes information provided by the Ministry of Finance of India and the Reserve Bank of India (RBI). India is also going to tell the story of its successes on the front of digital payments and financial inclusion in the G20 summit.
PM Modi proud of World Bank report
Digital payment infrastructure saved India 41 years!
The World Bank report states that India has built an excellent infrastructure of digital payments by combining systems such as digital ID, inter-communication payments, digital credentials ledger and account aggregation. It has achieved an impressive financial inclusion rate of 80% in six years, the report said. This is a feat that would have taken almost five decades to achieve without DPI’s initiative.
Jan Dhan account increased three times
The number of Pradhan Mantri Jan-Dhan Yojana (PMJDY) bank accounts has more than tripled since its launch. There were 14.72 crore Jan Dhan bank accounts in March 2015, which has increased to 46.20 crore by June 2022. Of these, 56% i.e. more than 26 crore bank accounts belong to women. This suggests that the role of DPI in this ‘leap’ is unmistakable, but that of the other ecosystems it is based on is quite significant. It has been said in the document that the fast payment system (FPS) like UPI has taken root very fast in India.
Former PM Manmohan Singh is proud of India’s role in Russia-Ukraine war, praised PM Modi on many other things
Private institutions also benefit greatly from DPI
The report also states that digital payment infrastructure can increase the capacity of private organizations, thereby reducing the complexity, cost and time of business operations. The account aggregator ecosystem for some non-bank financial companies (NBFCs) in India led to 8% higher conversion rates in SME loans, 65% savings in depreciation costs and 66% reduction in fraud detection costs.
The World Bank report says, “According to industry estimates, the cost of customer acquisition for banks in India has come down from $23 to $0.1 with the use of DPI. India Stack has digitized and simplified KYC processes, thereby reducing costs; Banks using e-KYC have reduced the cost of compliance from $0.12 to $0.06.
[ad_2]
Source link
