Digital Financial Transformation and Financial Well-being in India: An Empirical Study

Abstract

In the era of the technology world, we have witnessed the revolution of digital transactions, not only in financial institutions but also in other industries. In the era of digital banking, Digital Financial Services like Unified Payment Interface (UPI), AePS, Fastag, IMPS, NEFT, RTGS, QR, Debit, Credit card payments, and so on. Among this, the UPI transaction has become well known among all sections of the people in the country. This study is descriptive in nature. Based on Secondary data collected from RBI, National Payment Corporation of India (NPCI), and other government-authenticated sources. It was found that, from just 1 Million transactions in 2016, UPI has since crossed the landmark 10 Billion transactions. The UPI recorded the highest-ever volume of transactions, 45 per cent year-on-year increase in volume, reaching 14.44 billion in July 2024. The value of these transactions grew by 35% year-on-year, totaling Rs 20.64 lakh crore as of August 1, 2024. Further, it is predicted that, daily transactions on the UPI platform will touch 1 Billion by 2025. So, it is clearly witnessed that digital transformation has been taking place in urban as well as in rural India which will establish the financial well-being among the people.