An Appraisal of Aadhaar and Digital Payments Strategies in India

Abstract

India has high digital ambitions despite considerable poverty, the digital divide, and continued high currency usage. Digitalisation has caused both excitement and fear in India – government and companies are excited about an increase in efficiency, closing the leakages, customer confidence, and satisfaction. The present study examines the role of digitalisation in the Indian economy, especially in creating a unique Digital ID (Aadhaar) and its impact on the economic, financial, and payment infrastructure. The study finds major innovations in cheque processing, real-time gross settlement, national electronic fund transfer, and other payment methods have considerably reduced the cost of banking facility in India. The Indian capital market has already witnessed electronic trading and settlement and has recently witnessed emergence of no-brokerage companies which can change the fundamental dynamics of the investment industry in India. The retail trade market, especially e-commerce, ride share market in India reflecting global trends, has also witnessed considerable “multi-homing.”