Over the past year, Banuri, a village in the northern Indian state of Himachal Pradesh, has seen a dramatic change in how shoppers pay. Instead of handing over cash, both small grocery stores and street carts use a simple system of paying online by scanning a code with your smartphone.
"Even if you only buy half a kilogram of vegetables, you can pay digitally," Banuri vegetable vendor Nishant Sharma said as he handed a customer a 75-cent cauliflower. "Cash."
In recent years, millions of people have been exposed to new digital technologies as Internet access has expanded to remote areas through a government initiative called 'Digital India'. You can now connect. One of hers is the payments system that is transforming the way retail businesses are transacted in the vast rural areas and small towns where more than two-thirds of India's 1.4 billion people live. .
Street vendors to small shops are moving to digital payments, as are the flashy street shops. However, instead of credit and debit cards, it uses India's Unified Payment Interface, popularly known as UPI. It is a payment system with no merchant fees and can be used for the smallest transactions to make instant money transfers between bank accounts. Developed under the initiative of the Central Bank of India.
"The reason for the popularity of this system is the ease of use of the technology and the overall reduction in transaction costs. It is done with the click of a button, is cost-effective, and is easy to manage." Economist Mr. Bhanumurthy, Vice Chancellor of his N.R.D.R. Ambedkar College of Economics located in Bangalore. “This is certainly a big shift from what we have done in the past, and it has changed the way we do business.”
That expansion has brought more people into the banking system in recent years. It is also supported by a large-scale propulsion that tries to pull you in. Over 80% of adults now have a bank account, compared to just one-third of adults a few years ago. Affordable smartphones at just $50 are owned by approximately 750 million people. The COVID-19 pandemic has discouraged cash transactions, prompting many to switch to digital payments.
"The Digital India movement can bring about revolutionary changes in India and the lives of ordinary people," Prime Minister Narendra Modi said in his Independence Day speech on Monday. The world's real-time digital transactions now take place in India.
Whether in big cities, cities or small villages, India's retail sector is home to millions of small businesses.
The speed and scale with which they are adopting the new payment system is evident in Banuri village. About 70% of customers said they pay online. We have to count the money in ,” says Sharma. It's a bit of a long process. Then I have to go to the bank and deposit cash.
Economists say digital payments will boost business by facilitating transactions. Residents of small towns and villages, especially younger customers, are also recognizing the benefits of going cashless.
"Don't worry," said Vikas Sharma, a Palanpur resident. All you need is a phone," he said.
Digital commerce is just one of the benefits the Internet has brought to people living in remote areas. For seniors like retired civil servant Romesh Dogra, the biggest benefit is connecting with his three daughters via video call.
"Talking to my grandchildren cheers me up every day. I see them grow up. Life is better."
There are still gaps — internet speeds can be a challenge, especially in villages and small towns. Millions of people are still unconnected. But with rapid progress, it may not take long for India's digital footprint to expand.
