Page 37 - Banking Finance December 2024

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limits from banks and encouragement of digital banking was impossible in traditional banking era. India's Digital
are aimed at reducing corruption. Public Infrastructure (DPI) has been a significant enabler of
digital banking transformation. For example, the JAM (Jan
Central Government and state governments aimed to
reduce corruption, bribery, create deterrence for abuse Dhan, Aadhaar, Mobile), Unified Payments Interface (UPI),
of power; promote good governance and the rule of law The Account Aggregator (AA) framework has played a key
through Digitalisation various transactions. Hence, role. With the launch Aadhaar it has become easy to fulfil
digital banking needed to disrupt corruption, increase the Know your customer (KYC) requirements and open bank
account. Further, BharatNet and UPI made banking services
transparency in transactions, enabling accountability
and limiting human interactions. Further, digital are accessible in remote areas.
transformation is key to cutting red-tape through
Especially during COVID 19 digital banking flourished and
automation.
shown the real benefit of opting digital banking for banking.
The best example of reducing corruption is the success Digital banking helped in improving financial inclusion. It is
of Direct Benefit Transfer (DBT) schemes. The 'JAM also helping to reduce unaccounted money and corruption
Trinity' of the Jan Dhan-Aadhaar-Mobile has significantly by linking Aadhaar to bank accounts. On an overall,
removed mediators, made it easier to fraud and risks
transformation in banking, willingness to adopt, consumer
of fraud. Through digital banking, banks can act as
gatekeeper in identifying offences. For example, money comfort with digital payment methods, growth in biometric
laundering, tax evasion can easily tracked by banks payment, nationwide financial inclusion, and COVID - 19
accelerated growth made digital banking success and made
through know-your-customer (KYC) checks and identify
many things happen which we not dreamt even. Indian banks
any suspicious transactions.
are recorded three per cent higher than the global average
in mobile banking as per the latest survey by Deloitte.
The above given are some of the situations and
requirements which made digital banking need of the hour. Therefore, digital banking is the need of the hour in the
present state of economic development.
Future of Digital Banking
References
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Lahiri, Amartya. (2020). The Great Indian Demonetization.
evolutionary and radical changes. Banking industry's
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with various services at reasonable cost. Banks may use Elevates its Global Mobile Ranking. Retrieved on 30-11-
technology and give full control to accountholders/customers 2023. Available at https:// www.ookla.com/articles/india-
and customers can have their own way in dealing with their 5g-global-mobile-ranking-q3-2023.
bank and it stimulates costomer. Banks will help customer Kunt. et.al., (2018). Global FinTech Adoption Index. 2019.
have autonomy to make choices of savings, investments, and EY Global Financial Services. Retrived on 30-11-2023.
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