{"id":1010,"date":"2022-05-05T08:03:47","date_gmt":"2022-05-05T08:03:47","guid":{"rendered":"https:\/\/www.jagannath.org\/blog\/?p=1010"},"modified":"2022-05-05T08:03:49","modified_gmt":"2022-05-05T08:03:49","slug":"digitization-in-rural-areas-challenges-post-demonetization","status":"publish","type":"post","link":"https:\/\/www.jagannath.org\/blog\/digitization-in-rural-areas-challenges-post-demonetization\/","title":{"rendered":"Digitization in Rural Areas \u2013 Challenges Post Demonetization"},"content":{"rendered":"\n
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Dr Niti Saxena <\/a><\/p>\n\n\n\n

Associate Professor, JIMS, kalkaji<\/a><\/strong><\/p>\n\n\n\n

In November 2016,The Prime Minister of India, Mr. Narendra Modi made an announcement of demonetization of high denomination currency notes. After five year and four months of demonetization, India\u2019s digitalization of the economy in forms of payment, online banking and automation applying digital media powering the digital economy, promises to make India an empowered society. There have been various incentives provided by the Government of India aiming toward achieving the goal of a digital economy. The approach and attitude of Indians towards this new wave of digital revolution, plays a vital role. But in rural parts of India, there are many restrictions to adapt to these revolutionary changes, because one fact cannot be ignored that India, which is an Agro-based country, has many heterogeneous groups of people dwelling and transacting in many spheres. This fact makes it difficult to deal with digital payment and cashless living in the country.<\/p>\n\n\n\n

INTRODUCTION<\/strong><\/p>\n\n\n\n

All the financial transactions which are to be done electronically are known as E-payments, without using or involving any cash and cheque in physical. It is an online based payment system, done through the internet. In the E-payment system a person can make transactions (make payments, transfer of funds, booking anything online,etc) to another person or business without involving any physical cash, without minding the time, location and the amount of money. With this kind of advancement of technology and growing internet\u2019s popularity, buying and selling goods & services online have been increasing exceedingly, over the past few years, resulting in the need for a robustE-payment system.<\/p>\n\n\n\n

Around 70 per cent of the Indian population live in rural areas, and they contribute a keyproportion in the growth of the\u00a0country\u2019s GDP.\u00a0 People living in remote areas and villages lack in the technological skills which are most necessary when it comes to the e-payment system. The Government of India should encourage the concept of\u00a0 \u2018Smart Villages\u2019 along with \u2018smart cities\u2019. With the advancement in services of the banking sector various easy methods of payment have been developed like RTGS, NEFT, Mobile Banking and Internet Banking but in rural areas the majority of people are unaware of this system.<\/p>\n\n\n\n

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To understand factors that are affecting the smooth transition. Let\u2019s understand the following points:<\/p>\n\n\n\n

  1. Rural Literacy<\/strong><\/li><\/ol>\n\n\n\n

    India, a country of 139 crore people in it, where only 35% of people lives in the urban areas, which contributes about roughly 63% of GDP, while the remaining population live in rural areas, that are 65% of total population, who contribute only 27% to the GDP. With the majority of 65% in the rural areas, they are underdeveloped with no modern education of the age, still too far from the digitalization. There is a huge potential lying there, which can lead India to its vision of a $5 trillion economy in recent upcoming years. The Indian government started many initiatives intended to fill this \u201cdigital literacy gap\u201d and make India a digital empowering society.<\/p>\n\n\n\n