| | April 20188CIOReviewIN MY OPINIONigital payments in India are set to reach USD 1 trillion by 2023, according to a report by Credit Suisse. Digital payments in India currently ag-gregate less than USD 200 billion, of which mobile is still at just USD 10 billion in financial year (FY) 2018 E (estimated). It is estimated that the total digital payment market in India will grow to USD 1 trillion by FY23 led by the growth in mobile payments. An important driver of this growth is India's vast smartphone user base ­ the second largest in the world.The Indian economy has traditionally been dominated by cash. However, the increased adoption of smart phones to-gether with a favorable regulatory environment is pushing the economy to a less cash-dependent state and promoting the us-age of digital and smart card payments. Demonetization of Rs. 500 and Rs. 1,000 currency notes and the subsequent policy measures taken by the Government of India (GOI) and the Reserve Bank of India (RBI) have provided further impetus to digital and card payments. Credit Cards and Smart Cards have become the most common forms of payment for e-commerce transactions.Smart cards are highly secure and are used worldwide in applications where the security and privacy of information are critical requirements. India's central banking institution, the Re-serve Bank of India (RBI) had directed banks to issue smart debit cards in 2013 replacing magnetic strip cards as smart cards require a PIN to authorize purchases. The key here is to keep technology at the forefront and harness it by integrating with core offerings and security to provide a best-in-class experience to the users. Given the advantages of going cashless and ad-vancements in innovative technologies, India is also striving to become a digital economy with an aim to transform itself into a digitally empowered society and knowledge economy. India's central banking institution, the Reserve Bank of In-dia (RBI) defines Digital transactions as transactions in which the user authorizes the transfer of money through electronic means, and the funds flow directly from one account to an-other. These accounts could be in banks, or with other entities/service providers. These transfers could be done through means of smart cards (debit/credit), mobile wallets, mobile apps, net banking, Electronic Clearing Service (ECS), Electronic Fund Transfer (EFT), Immediate Payment Service (IMPS), or other similar means.Over the years, the RBI has been focusing on technolo-gy-based solutions for the improvement of the payment and settlement system infrastructure, coupled with the introduc-tion of new payment products by taking advantage of the technological advancements.Smart Cards offer users more security, convenience and con-trol than any other payment methods. The wide variety of cards available - credit, debit and prepaid - offer enormous flexibility to the people. Visa, MasterCard and RuPay cards are some of DA SMARTER, DIGITAL, CASHLESS INDIAPAVING A WAY TOWARDSBy Yogesh Dhingra, Group CFO & CSO, Blue Dart
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