When it comes to the banking system, India stands at a unique place. While those in the cities are embracing alternate payments more readily, a large section of rural India had, until recently, not even owned a bank account. Yet, both are on the digital payment space today.
Rural India is leapfrogging into online banking. With penetration of mobile and internet, mobile banking is transforming how people in villages and semi-urban areas interact with money. Conventional glitches like travelling distances to access a bank and unavailability of cash are making digital products popular in these areas. These challenges were until now coped with indigenous methods like barter system or informal IOU’s. However, digital banking is replacing all the existing norms and streamlining money transfers.
When it comes to the banking system, India stands at a unique place. While those in the cities are embracing alternate payments more readily, a large section of rural India had, until recently, not even owned a bank account. Yet, both are on the digital payment space today.
Rural India is leapfrogging into online banking. With penetration of mobile and internet, mobile banking is transforming how people in villages and semi-urban areas interact with money. Conventional glitches like travelling distances to access a bank and unavailability of cash are making digital products popular in these areas. These challenges were until now coped with indigenous methods like barter system or informal IOU’s. However, digital banking is replacing all the existing norms and streamlining money transfers.
Rural internet access is growing significantly, and availability of local language content has made it further approachable. New technology like biometrics through fingerprint scan, and new innovations like QR code & UPI are allowing a large section of the uneducated masses to enter the banking system. As on July 10, 2019, over 36 crore bank accounts were opened under Prime Minister Narendra Modi’s Jan Dhan Yojana. Also, due to improved access to mobile banking, affordable data plans, and increased awareness, it is estimated that there are 251 million internet users in rural India. The village of Akodara earning the tag of India’s first digital village is a relevant indication of how alternate payment systems are not restricted to the urban communities alone. Clearly, rural India is signing up for the digital revolution!
As one of the leading providers of end-to-end cash and digital payment solutions & automation technology, AGS Transact Technologies is committed to facilitate a secured payments infrastructure which brings more & more people under the ambit of digital India. With our customised digital payment and merchant solutions like ONGO PoS solutions, ONGO loyalty programs, ONGO Billing++ and ONGO QR ++; we aim to simplify the day-to-day transactions in these areas.
Currently, AGS Transact Technologies has approx. 235, 000 touch points across 2,200 cities and towns.
Source:
- PMJDY website
- Kantar IMRB ICUBE Report