Digital Payments

Why it matters

• Promotes financial inclusion by extending banking services to unbanked and underbanked populations.
• Enhances transparency and accountability in the economy by creating a verifiable digital audit trail for financial transactions.
• Reduces the cost and friction associated with cash management, printing, and distribution.
• Facilitates the formalization of the informal economy by integrating small-scale vendors into the organized financial ecosystem.

How it is asked

Focus on the infrastructure supporting digital payments, such as the Unified Payments Interface (UPI), the role of the National Payments Corporation of India (NPCI), and the impact of digital financial literacy on economic governance.