India's Digital Payment Boom: Transforming Transactions Across the Nation
India has experienced significant growth in digital payments, with over 65,000 crore transactions in recent years. The government, in collaboration with various stakeholders, has implemented measures to encourage digital adoption. Meanwhile, the new MSME credit assessment model, based on digital footprints, enhances loan evaluations by Public Sector Banks.
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- India
The digital landscape in India has seen explosive growth, with over 65,000 crore transactions valued at more than Rs 12,000 lakh crore in six years, Parliament was informed on Monday. In response, the government collaborates with the RBI, NPCI, fintech, banks, and states to boost digital payment adoption nationwide.
Simultaneously, the RBI launched a Payments Infrastructure Development Fund in 2021 to expand digital payment infrastructure in smaller cities and Jammu & Kashmir, aiming to deepen electronic transaction reach. By May 2025, around 4.77 crore digital touchpoints have been established, signaling substantial progress in digital integration.
Additionally, the introduction of a digital credit assessment model for MSMEs in the 2024-25 Union Budget underscores a focus on technology-driven loan appraisals. The model leverages data authenticity, enabling efficient, objective evaluations and has resulted in nearly 99,000 MSME loans approved between April and mid-July 2025.
(With inputs from agencies.)
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