Not too long ago, cash withdrawal was quite a hassle; ATMs were few and far between, especially in smaller towns and rural pockets of the country. For many, the nearest ATM was miles away, making frequent cash withdrawals a luxury they could not afford. As a result, people entrusted their debit cards and PINs to someone willing to fetch cash from the city on their behalf.
However, this struggle for cash gradually faded away with the advent of digitisation, which allowed even small retailers to transact digitally with customers. Today, with the ability to transfer money instantly at the tap of a button using Unified Payments Interface (UPI), India’s financial inclusion story is breaking new ground. In fact, as per recent data, a staggering 40% of all payments in India happen digitally, with UPI commanding the lion's share.
Recognising the importance of financial inclusion, the Government of India has undertaken concerted efforts to ensure universal access to banking and financial services. A flagship initiative in this regard is the Pradhan Mantri Jan Dhan Yojana (PMJDY), launched in 2014. This scheme aims to provide every unbanked household with a zero-balance bank account and a RuPay debit card, facilitating their entry into the formal financial system.
Complementing the PMJDY is the JAM (Jan Dhan-Aadhaar-Mobile) trinity, which leverages the unique biometric Aadhaar identification system and the widespread availability of mobile phones. This integrated approach has enabled.
