Citing the Reserve Bank of India (RBI) data on sharp rise in use of digital payments, Niti Aayog has said that the government's massive currency culling exercise in November has given “extra boost” towards the movement of digital finance. Niti Aayog’s officer on Special Duty and Head of Economics, Finance and Commerce Dhiraj Nayyar said that apart from the government's initiative to boost digital payments, the industry, as well as various app (mobile application) innovators have given it a massive boost.
He said that the move led to very limited cash in hand for individuals that paved the way for greater use of digital payments and added that a unique public private partnership will not only play a crucial role for digital innovation, but will also lay the foundation for the financial economy.
He further said that the four pillars -- biometric-based identification Aadhaar, Jan Dhan Yojna, usage of smartphones, mobile applications, wallets and cost of digital connectivity -- will be the foundation on which digital finance, and financial data inclusion will be built in the next five years. Besides, in a bid to fight black money and terror financing, the government in November 2016, had scrapped high-value Rs 500 and Rs 1,000 currency notes. Thereafter, new Rs 500 and Rs 2,000 notes were also introduced.
