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- Published: February 28, 2023 11:46
As the world continues to discuss the importance of inclusion and diversity, it’s worth noting that Indian culture has long held the belief in the concept of “Sarva Samavesh” or ‘inclusion of all’. This principle, which has been a central tenet of Indian philosophy for centuries, is now being reflected in the country’s push for financial inclusion through the use of technology such as the Unified Payments Interface (UPI).
Unified Payments Interface, is a highly advanced payment system that has revolutionized the way people transact in India. One of the key features that sets UPI apart from other payment methods is its scale. With millions of transactions happening every day, UPI has the capacity to handle a massive amount of financial activity, making it a reliable and secure option for users.
Additionally, UPI stands out due to its speed. Transactions are processed almost instantly, allowing users to transfer money, pay bills, and make
purchases with ease. This level of speed and efficiency is crucial in today’s fast-paced digital world, where people expect transactions to be completed quickly and smoothly. Finally, UPI is known for its efficiency, which is evident in its simple and user-friendly interface. It eliminates the need for multiple usernames and passwords, and allows for easy transactions with a single click. These qualities, combined with its secure infrastructure, make UPI one of the most trusted and preferred payment systems in India today.
India is leading the way in the digital payments revolution, and its success story is one that is being closely watched and emulated by countries around
the world. The UPI, developed by the National Payments Corporation of India (NPCI), has been a game-changer for small vendors and businesses in India, making it easy for them to accept digital payments and conduct financial transactions. In the last calendar year, UPI recorded an incredible 7404 crore transactions worth INR 125 lakh crore. At the Davos World Economic Forum, the Honorable Minister for IT & Electronics, Ashwini Vaishnaw, announced that in December 2022, India’s digital payment transactions reached an impressive amount of US$ 1.5 Trillion. This figure is reportedly 4 times the combined total of digital transactions in the United States, the United Kingdom, Germany, and France.
The concept of inclusion for all aligns with the idea of “Sarva Samavesh” and UPI has played a significant role in achieving this goal by providing financial services to all, regardless of their location or economic status. This is not only a progressive move but also an ancient vedic concept that is being put into practice in today’s world. It is worth noting that while the West continues to lecture the world on the importance of inclusion, India has been practicing this principle for ages. Whether India’s rise in digital payments will lead to great business and cooperation, or to increased competition and transparency, remains to be seen, but one thing is certain: the world is on the brink of a major power shift from China & West towards India, and the consequences will be felt for decades to come. India has been at the forefront of the digital payments revolution, and the country’s efforts in this regard have the potential to serve as a model for the rest of the world.
One of the key factors that have contributed to the success of UPI is its interoperability. The system allows users to access multiple bank accounts
through a single application, making it easy for people to switch between different banks and payment providers. The system enables users to make
payments and transfer money using a virtual address, eliminating the need for account numbers and IFSC codes. This has made digital transactions
more convenient and accessible for the majority of the Indian population.
This has led to increased competition among banks and payment providers, which in turn has resulted in better services and lower costs for consumers. UPI has also played a vital role in driving financial inclusion in India. The system’s ease of use and low transaction costs have made digital payments accessible to a large number of people, including those in rural and remote areas who were previously unbanked. This has opened up new opportunities for small businesses and entrepreneurs and has helped to boost economic growth and development.
The Indian government has also been proactive in promoting the use of digital payments. In 2016, the government launched a demonetization drive,
which resulted in the withdrawal of large denomination notes from circulation. This led to a sudden increase in the use of digital payments, as
people were forced to use alternative methods of payment.
The success of UPI in India has not gone unnoticed. In addition to its domestic success, UPI is also being looked at as a model for other countries
to replicate. The system has been widely praised by experts and NPCI is widening access to UPI to non-resident Indians in several countries, including
Singapore, U.K., Australia, Canada, Bhutan, U.A.E and the U.S. This means that UPI is becoming a global payments rail, linking real-time systems and facilitating real-time payments. The Indian government’s efforts to promote a digital economy, led by UPI, have the potential to serve as a blueprint for other countries looking to digitize their economies and drive financial inclusion.
As the world becomes increasingly digital, it is essential that countries have a reliable and efficient digital payments infrastructure in place. India is
leading the way in this regard, and its success is a testament to the power of technology to improve lives and make financial transactions more
convenient. As more and more countries look to India for guidance on how to develop and implement their own digital payments systems, it is clear that India is at the forefront of this revolution. The UPI model is already being replicated overseas, with Singapore’s PayNow and Thailand’s PromptPay real-time systems already linked.
Also, financial inclusion through UPI is closely linked to the idea of Antyodaya, which was propounded by Deen Dayal Upadhyaya. The concept of
Antyodaya emphasizes on uplifting the standard of living of the poorest sections of the society and promoting equality in the economy. UPI, as a
digital payment platform, helps to achieve this goal by providing access to financial services to individuals who were previously excluded from the formal banking system. By enabling real-time and seamless financial transactions, UPI is empowering individuals, particularly those in rural and
remote areas, to participate in the economy and improve their standard of living. Thus, UPI is playing a vital role in realizing the idea of Antyodaya and creating an inclusive society.
In conclusion, India’s efforts to revolutionize digital payments through UPI have been nothing short of remarkable. The system’s interoperability, ease of use, and low transaction costs have made digital payments accessible to a large number of people and have played a vital role in driving financial
inclusion. UPI, as a digital payment platform, is aligning with the vision of Antyodaya by Deen Dayal Upadhyaya by providing financial inclusion to the masses and empowering them with access to seamless, secure and real-time financial transactions, thereby uplifting their standard of living and
promoting equality in the economy. India’s digital payment revolution driven by UPI is a game-changer for the entire world and it is a model for other
countries to follow. The expansion of UPI to other countries and the linkages with other real-time systems is a significant step towards a global digital
economy. The world is watching and India is leading the way.
