MBA Journals Peer-reviewed management research from Consortium e-Learning Network

NOLEGEIN Journal of Financial Planning and Management

Navigating the Digital Transformation Landscape: An Exploration of India's Financial Sector Evolution, Challenges, and Opportunities

  1. Pavankumar G Kulkarni
  2. S Baskaran
  3. Amrutha Laxmeshwar
  4. Jyothi G

Abstract

The advancement of India's financial sector into the digital realm has been propelled by government initiatives, technological advancements, and shifting consumer preferences. This transition has not only widened access to financial services but has also boosted their efficiency and transparency. Embracing digital financial transactions is crucial for fostering financial inclusivity, convenience, transparency, and economic advancement. Such adoption empowers individuals, reduces expenses, enhances security, and aligns with the government's push for digitalization and financial literacy nationwide. Prioritizing digital uptake is likely to remain a key focus in India's endeavours to modernize its financial sector and spur economic progress. The surge in UPI transactions in India owes to its user-friendly nature, compatibility, government backing, security protocols, minimal transaction costs, and widespread acceptance. UPI has revolutionized transaction habits in India and has played a pivotal role in enhancing financial inclusivity and digitalization. Continuous education, robust security measures, and infrastructure enhancements are essential for sustaining the growth of digital financial transactions in India. Moreover, the COVID-19 pandemic has accelerated the pace of digital transactions globally, underscoring the significance of digital payment systems in the contemporary global economy. Despite remarkable growth in digital transactions in India, several challenges such as internet accessibility, cyber threats, technological disruptions, language barriers, and limited computer literacy pose significant obstacles to its further expansion, potentially exacerbating societal disparities
Support