Digital transformation in Indian banks

Abstract

The strategic decision of Demonetization taken by Government of India created tremendous impact on all the sectors. ccording to the Payments Council of India, the growth rate of the digital payments industry, which was earlier in the range of 20-50%, has accelerated post demonetisation to 40-70%. The banking sector was one of the major affected sectors. This policy made a compulsion to perform online/cashless financial transactions and to adopt digital banking services. • India's banks are transforming. They are investing heavily in digital technologies to catch up with leading global competitors offering wide-ranging and sophisticated services. One of the talking points of the digital payments story has been the phenomenal growth witnessed by new age instruments such as Unified Payments Interface (UPI), prepaid payment instruments (PPis), Aadhaar Enabled Payment System (AEPS), along with wellestablished ones such as National Electronic Fund Transfer (NEFT), Real Time Gross Settlement (RTGS) and cards. Through our analysis, we will understand how different banking and financial institutions in India, adapted to this sudden change and how have they fared since then. We wi ll also look at the impact of different state governments and the central government on the rate of digital transformation of various public sector banks.