The Indian economy is undergoing a structural transformation, as the country’s cash dominated economy is gradually turning into a digital economy driven by smart-phone lead payment economy, a report by the State Bank of India has said.

The report has said that in a remarkable development, for the first time in 20 years, currency in circulation declined during the Diwali week.

The success of the digital journey is primarily due to the relentless push by the Government to formalize and digitalize the economy, SBI said, adding that the interoperable payments systems like Unified Payments Interface (UPI), wallets and prepaid payment instrument (PPIs) have made it simple and cheaper to transfer money digitally, even for those who have no bank accounts.

India has been driving the global digital economy. It has already clocked 72 billion digital payment transactions in 2022. In 2021, the number stood at 44 billion. On an average India has also been registering 280 million digital transactions a day.

Digital transactions have been steadily rising in India. In 2018, the total number was 14.59 billion while in 2020, the year that was marked by Covid restrictions, the number was 34 billion.

To sustain economic growth, South Asia can tap into the immense potential of the digital economy and the emerging services sector by expanding digital markets, businesses, and digital financial services, Cecile Fruman, Director, Regional Integration and Engagement, South Asia earlier told India Narrative.

Also read: India tops world ranking in digital payments