The Evolution of Digital Payments in Rural India: An Insight into Challenges and Opportunities

Authors

  • Hiral Vani
  • Reetika Agarwal

DOI:

https://doi.org/10.46610/JESFR.2025.v06i01.002

Keywords:

COVID 19, Digital India, Digital payment, Reserve Bank of India (RBI), Unified Payments Interface (UPI)

Abstract

Digitization is the need of an hour. Digital payment has been a word of mouth for every citizen in India since the invention of UPI. Other digital payment modes include Internet banking, mobile banking, Aadhar Enabled Payment Systems (AEPS), National Electronic Fund Transfer (NEFT), Real Time Gross Settlement (RTGS), Electronic Clearing Service (ECS), Immediate Payment Service (IPS), E Wallet, etc. The adoption of digital payment in India is increasing. Post pandemic and demonetization, the use of digital payment has outperformed expectations. However, the rural areas faced many challenges like illiteracy, no internet facility, lack of trust, low financial freedom for women, no incentives, etc. Government programs and RBI policies have led to the promotion of digital payment in rural areas as well. The opportunity for rural areas grew, and thus, the adoption of digital payment in rural areas also increased various opportunities like providing internet facilities, low cost service, easy usage, multiple languages, etc. The prospects of digital payments in rural areas will likely grow and contribute significantly to the Indian economy.

Published

2025-01-16

How to Cite

Hiral Vani, & Reetika Agarwal. (2025). The Evolution of Digital Payments in Rural India: An Insight into Challenges and Opportunities. Journal of Economic Studies and Financial Research (e-ISSN: 2584-1629), 6(1), 16–22. https://doi.org/10.46610/JESFR.2025.v06i01.002