India holds a 48.5% share in the global real-time payments volume, according to the Reserve Bank of India (RBI) report released on Monday. The report also highlighted that India leads the world in global remittances and received $115.3 billion in 2023.

“India is leading the world with a share of 48.5% in global real-time payments volume. Global remittances that are increasingly being effected through mobile money and digital platforms are estimated to have increased to $857.3 billion in 2023, led by India ($115.3 billion),” said the report.

The digital economy currently makes up about a tenth of India’s GDP and is expected to grow to a fifth of GDP by 2026, based on growth rates observed over the past decade. According to the RBI, digital payments have recorded a compound annual growth rate (CAGR) of 50% in volume and 10 percent in value terms over the last seven years, involving 164 billion transactions worth Rs 428 lakh crore in 2023-24.

The report noted that India is at the forefront of the digital revolution, embracing not just financial technology (FinTech) but also the India Stack, which includes biometric identification, the unified payments interface (UPI), mobile connectivity, digital lockers, and consent-based data sharing.

However, the report also pointed out that cybersecurity is a significant challenge due to the diverse nature of cyber threats targeting the digital financial infrastructure. Security incidents handled by the Indian Computer Emergency Response Team (CERT-In) increased from 53,117 in 2017 to 13,20,106 during January-October 2023. Unauthorized network scanning/probing/vulnerable services account for more than 80% of all security incidents in India.

Looking ahead, the report noted that India’s digital technology infrastructure will be a key growth engine. The focus is on next-generation communication technologies like 6G and satellite networks, alongside expanding the 5G network to rural and currently uncovered urban areas. Advancing these technologies will create new opportunities in underserved areas.

The report also stated that achieving self-sufficiency in chip manufacturing is crucial for realizing the full potential of the digital revolution. (ANI)

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The Reserve Bank on Friday approved Rs 87,416 crore dividend payout to the central government for 2022-23, nearly triple of what it paid in the previous year. The dividend payout was Rs 30,307 crore for accounting year 2021-22.

The decision was taken at the 602nd meeting of the Central Board of Directors of Reserve Bank of India held under the chairmanship of Governor Shaktikanta Das.

“The board approved the transfer of Rs 87,416 crore as surplus to the central government for accounting year 2022-23, while deciding to keep the Contingency Risk Buffer at 6 per cent,” RBI said in a statement.

The board also reviewed the global and domestic economic situation and associated challenges, including the impact of current global geopolitical developments.

The board also discussed the working of RBI during 2022-23 and approved the annual report and accounts of the central bank for the year.

Madan Sabnavis, chief economist of Bank of Baroda said that this surplus transfer will come in very handy and ensure that the government managed it fiscal numbers with relative ease given that there are question marks on the divestment programme.

“The Budget had looked at a number of Rs 48,000 crore as dividend from banks and RBI. RBI has overshot this number with the transfer of Rs 87,000 cr. This was enabled by higher earnings on sale of forex during the year, better returns on forex investments in US treasuries (though value of bonds would have fallen which has to be charged to the contingency reserve), revaluation of forex assets and adjustments in reserves as per the Bimal Jalan Committee recommendations. The RBI would have had higher pay-outs due to the higher SDF rates with the system being in surplus all through the year,” Sabnavis said.

According to him, public sector banks have also reported very good profits and announced dividend, there will be higher flows of dividends from this source too. Add to this the possible higher dividend payments by the oil marketing companies and the situation appears quite comfortable from a market perspective as this will not lead to higher market borrowings. (Business Insider)

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