The majority of the programs, industries and functions will completely go digital in the coming months. The trend will continue to gain traction with PM Narendra Modi emphasizing on the concept of Digital India.
The online space and the newspapers were abuzz about Prime Minister Narendra Modi’s visit to the US this week. In what can be termed as a major development, Modi met with the dignitaries of the US Embassy, Facebook Head Honcho Mark Zuckerberg to name a few. Monday witnessed the Prime Minister meeting Barack Obama for the third time in the period of 12 months. These developments indicate that the ‘Digital India’ push will continue to gain traction in the coming months. More and more industries are now identifying the need to go digital in regards to their operations and payment modules. It provides better functioning and efficiency. According to the latest developments, Nashik-based industries have urged the fellow industries to shift their allegiance towards paperless and online systems. Industries are calling out for the Maharashtra Industrial Development Corporation (MIDC) and District Industries Centre (DIC) to go digital. The industries have also urged for the incorporation of online payment facilities. The 2011 census in India denoted that approximately 41.3 percent of the country’s population does not have access to formal financial services. The government is doing its bit to encourage the advantages of going digital. According to India on the Go: Mobile Internet Vision 2017 by KPMG-IAMAI, paper clearing transactions in May 2014 observed a 3 percent drop by volume and 36 percent reduction in the overall transactions. Mobile banking usage in May 2014 grew impressively by 57.9 percent in terms of volume and by a whopping 226 percent in terms of value of transactions as compared to the transactions in May 2013. More and more industries are now identifying the need to incorporate the digital operation structure and implement digital payment options in their functioning.
Speaking about the need to go digital, Sanjiv Narang, president of Nashik Industries & Manufacturers’ Association (NIMA), said, “There is a need for transparency in the functioning of MIDC and DIC. This will happen only after both the departments go online and paperless. The industrialists have to go to MIDC or DIC for minor reasons and complete various procedures such as allocation of plots, registration for starting unit and getting building completion certificates (BCC).” Here’s a look at the Payment system in India, according to the volume, courtesy the KPMG-IAMAI study.
Payment systems in India growth by volume between May-13 to May-14
(In INR million)
Mobile Banking grew from 6.9 to 10.9
Mobile Wallets grew from 7.0 to 13.6
IMPS grew from 0.4 to 3.3
Paper Clearing dropped from 103.4 to 99.9
RTGS grew slightly from 6.7 to 7.8
As you can clearly see, that the online payment avenues are showing tremendous growth in a very little span of time. The growth in terms of value is even huge. According to the KPMG-IAMAI study, Mobile banking grew from 11.9 million in May-13 to 38.8 million in May-14. On the other hand, Paper Clearing dropped from 7926.2 million in May-13 to 5110.3 in May-14. The statistics clearly indicate that mobile payment options are fast gaining the trust of the Indian consumers and companies alike. Going digital can be really beneficial for the industrialists associated with MIDC and DIC. Along with benefiting via the process of quick process due to automation, payment renewals and tax payments can be easily done through the digital systems. P R Bandopiya, executive engineer (Nashik region) in the MIDC, said, “The guidelines pertaining to ‘Digital India’ are yet to be framed or issued by our head office. We have already started the tendering process online. Moreover, we have also started online tax payment.”