72% of Financial transactions of Public sector Banks are now done through Digital Channel Around 72% of transactions of PSB’s are now done via Digital platforms, and additionally, the number of customers active on Digital channels has increased by almost double the amount. After happening many events one by one in the recent time like demonetization, Corona Pandemic which results in a positive response from customers leads nourishing the growth of Private Digital Banks.
Sometime before The Reserve bank of India has officially declared that “At this movement, we are not considering a separate Licensing Category for Digital Banks” which was also told by our honorable Minister of State for Finance K Karad in a Written reply to Rajya Sabha. As a result of the Positive environment, PSB’s are already investing tons of money in Digital technologies like Artificial intelligence, Blockchain, and Robotic process automation which is going to play a very important role in transforming the way of banking in India at least. Several tasks can be done only by humans and through Artificial Intelligence it is possible to replace humans to do some specific tasks which can become the main reason for PBS to focus on it.
Nourishing the AI technology Also, AI technology is used by many Apps, websites, and banks to improve customer understanding and personalization which is why with aggressively investing in it PBSs are Adopting them for better results and Engagement of Customers. As a result of various scenarios, the growth of Digital payment is increased by 30.19% recorded by the end of this march and it is also estimated that this will increase gradually in this year also due to the craze of cashless transactions in the country, the Data which was showed by RBI also proves it.
According to Digital Payment Index As per new constitute the payment through Digital platforms the Digital payment Index (RBI-DP). The index increased to 270.59 from 207.84 which was the reading of the last year The RBI officially said that The (RBI-DPI) had demonstrated great growth in the index which was representing Approval and expansion of Digital payment overall the Country in recent days RBI also announced in recent that creation of Compound RBI_DPI with march 2018 as a foundation to capture the scope digitization of payments across the country to get exact numbers.
The RBI embraces 5 wide parameters to enable the measurement of Expansion and saturation of digital payments in India in different periods These parameters are –
(i) Payment Enablers (weight 25%),
(ii) Payment Infrastructure – Demand-side factors (10%),
(iii) Payment Infrastructure – Supply-side factors (15%),
(iv) Payment Performance (45%) and
(v) Consumer Centricity (5%).every parameter has its Sub parameter which includes additional and many measurable IndicatorsThe RBI-DPI index has demonstrated a significant growth index representing the rapid adoption and deepening of digital payments across the country in recent years.