Digital Financial Services: Challenges and Prospects for Liberalized and Globalized Indian Economy

Abstract

Financial services such as payments, credit, savings, insurance etc. are accessed and delivered through digital channels. In this context, the term “digital channels” refers to the internet, mobile phones (both smartphones and digital feature phones), ATMs, POS terminals, NFC-enabled devices, chips, electronically enabled cards, biometric devices, tablets, phablets and any other digital system. Therefore, Mobile financial services (MFS) are also a part of the digital financial services (DFS). There are following objectives of this paper-1) To describe digital financial services through cashless funds flow in liberalized and globalized Indian economy. 2)To examine the prospects of digital financial services through cashless economy to the general public and 3) To highlight the challenges of digital financial services through cashless economy in India. For fulfilling the above objectives, researcher makes hypotheses for testing the data. Present study is written in descriptive as well as exploratory form. Secondary data is collected form authentic sources like Economic Survey, journals, IAMAI and Statista-The Statistics Portal website. The research will use convenient sampling for collecting primary data. The people which are easily accessible have been chosen for the study. Testing will be used for analyzing the data. Due to innovation in digital payment technologies and increasing customer satisfaction, the growth trends in digital payments may be positive and will might continue to dominate the payment landscape in India. But the biggest challenge in front of Indian economy may digital illiteracy, inadequate rural penetration of internet connectivity, inadequate banking infrastructure, lack of awareness among rural customers, unorganized indigenous market.