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Subject: “Digital Payments,Digital Infrastructure”

  • What is the status of digitalization in the Indian economy? Examine the problems faced in this regard and suggest improvements.

    India is undergoing rapid digital transformation driven by Digital India, affordable data, and expanding digital public infrastructure.

    Status of Digitalization in the Indian Economy

    India is the third largest digitalised country (State of India’s Digital Economy Report 2024).

    The digital economy contributes 11.74% of national income. Projected to exceed agriculture and manufacturing in <6 years.

    Growing @ CAGR of 20%.

    Employs 14.67 million workers (2.55% of workforce).

    E-commerce market projected to touch USD 150 billion by 2026

    UPI handles over

    E-governance – GeM portal, DigiLocker, e-Visa, DESH-Stack portal, etc

    Sectoral contributions:

    Digital-enabling industry: 7.83% of GVA (highest).

    New digital industries: ~2% of GVA (Big Tech, platforms, intermediaries).

    Traditional sectors (BFSI, trade, education): ~2% of GVA.

    Problems in Digitalization

    Digital divide – rural-urban, gender, income gaps.

    Only 20% digitally literate (NFHS-5)

    Connectivity issues – slow BharatNet rollout, poor last-mile fibre.

    Cybersecurity risks – rising digital fraud, weak cyber hygiene. Eg- Aadhar Data breach

    Data protection concerns – gaps in implementation under DPDP Act.

    Low MSME digital adoption due to cost barriers, limited awareness.

    Digital monopolies – dominance of Big Tech in new digital industries.

    Way Forward

    Accelerate BharatNet and improve last-mile fibre and 5G coverage.

    Scale digital literacy via PMGDISHA 2.0.

    Strengthen cybersecurity through CERT-In capacity, digital hygiene campaigns, and privacy-by-design.

    Support MSME digitalization via incentives, cloud credits, and ONDC onboarding.

    Promote multilingual digital content for inclusion.

    Effective implementation of the Digital Personal Data Protection Act, 2023

    Harnessing digital economy with focus on 3 I’s – Infrastructure, Investment, Innovation can realise the vision of Knowledge Economy @2047

  • Consider the following statements

    Consider the following statements:

    1. National Payments Corporation of India (NPCI) helps in promoting the financial inclusion in the country.
    2. NCPI has launched RuPay, a card Payment scheme.

    Which of the statements given above is/are correct?

  • Consider the following

    Consider the following :
    1. Aarogya Setu
    2. CoWIN
    3. DigiLocker
    4. DIKSHA
    Which of the above are built on top of open-source digital platforms ?

  • Consider the following countries

    Consider the following countries:
    I. United Arab Emirates
    II. France
    III. Germany
    IV. Singapore
    V. Bangladesh
    How many countries amongst the above are there other than India where international merchant payments are accepted under UPI?

  • Regarding ‘DigiLocker’, sometimes seen in the news, which of the following statements is/are correct

    Regarding ‘DigiLocker’, sometimes seen in the news, which of the following statements is/are correct?
    1. It is a digital locker system offered by the Government under Digital India Programme.
    2. It allows you to access your e-documents irrespective of your physical location.
    Select the correct answer using the code given below.

  • Which of the following is a most likely consequence of implementing the ‘Unified Payments Interface (UPI)’

    Which of the following is a most likely consequence of implementing the ‘Unified Payments Interface (UPI)’?

  • With reference to digital payments, consider the following statements

    With reference to digital payments, consider the following statements:
    1.BHIM app allows the user to transfer money to anyone with a UPI-enabled bank account.
    2.While a chip-pin debit card has four factors authentication, BHIM app has only two factors of authentication.
    Which of the statements given above is/are correct?

  • In India, the term “Public Key Infrastructure” is used in the context of

    In India, the term “Public Key Infrastructure” is used in the context of

  • With reference to the Central Bank digital currencies, consider the following statements

    With reference to the Central Bank digital currencies, consider the following statements:
    1. It is possible to make payments in a digital currency without using US dollar or SWIFT system.
    2. A digital currency can be distributed with a condition programmed into it such as time-frame for spending it.
    Which of the statements given above is/are correct?

  • Consider the following statements in respect of the digital rupee

    Consider the following statements in respect of the digital rupee:
    1. It is a sovereign currency issued by the Reserve Bank of India (RBI) in alignment with its monetary policy.
    2. It appears as a liability on the RBI’s balance sheet.
    3. It is insured against inflation by its very design.
    4. It is freely convertible against commercial bank money and cash.
    Which of the statements given above are correct?