DIGITAL INFRASTRUCTURE PROLIFERATION IN BANKING SYSTEM

Rajesh Kumar Saini Research Scholar, School of Studies in Commerce,Vikram University, Ujjain. ...................................................................................................................... Manuscript Info Abstract ......................... ........................................................................ Manuscript History Received: 08 March 2020 Final Accepted: 10 April 2020 Published: May 2020


ISSN: 2320-5407
Int. J. Adv. Res. 8(05), 392-394 393 system which has around 21 banksfunctioning and providing basic facilities to the consumers with just a touch. This application also enables users to schedule payments for a future date as per requirements.
Similarly, the KYC feature has added to the safety and tracking of a customer's background. KYC refers to Know Your Customers which helps the banks in checking the suitability or the risk involved in making a business relationship with their customers. It minimizes the risk of fraud by eliminating suspicious elements earlier. It is useful specially in knowing the history of stockbrokers, chartered accountants and other consistent users of financial activities. This digital infrastructure provides a check on all the activities so that malpractices can be reduced.
However, the digital infrastructure has removed the credit impediment and helped in the flow of money in the economy. As the commercial transactions used to be on credit terms or through cheques and demand drafts. The digital infrastructure has made it easier to pay immediately through the app within seconds. The transactions are based on real time gross settlement system (RTGS) and national electronic funds transfer (NEFT) where one does not have to wait in the queues of banks or even ATMs.

Research Methodology:-
The method used in this research is qualitative in nature. The data used in this research is secondary data. It has been collected through various websites, journals and newspaper articles related to digital infrastructure and digital India.

Review of Literature:-
Harun R Khan, in his report on "Digital India: Emerging Challenges & Opportunities for the Banking Sector" has explained how digital revolution is taking place. The research has shown how e-payments have increased in the recent times. NEFT volumes and values grew by 67.71% and 50.87%, respectively. Debit card usage grew by 28.35% against the growth rate of credit card at 25.24 %. There is more need to make people aware about the digital use of banking apps. Optimal enhancement of cloud computing and mobile capabilities might result in yielding higher profits at low costs. Mining of Big Data can open up new revenue verticals for the banks and help better risk measurement along with effective identification of sales or cost-saving opportunities.
K Srinivasa Rao, in his article, talks about the hike in the sales of banks after adopting electronic delivery channels. According to his repot sales have increased by 12,11,890 to 45,89,727 and number of debit cards increased form 604 million to 835 million in September 2015 to September 2019. It has resulted in proliferation of digital infrastructure development in banking industry. Certain relaxations have been given to cooperative banks and payments bank to become Small finance Banks (SFB) in order to benefit the lower sections of the society. Merchant discount rates have been waived in order to promote digital development. There is a need to createawareness amongst the people in village area to unleash its full potential. Lack of knowledge and digital education is the hurdle which is not allowing the development to the fullest.
Arvind Guptatalks about India Stack. It is a mixture of APIs that permits governments, corporations, start-ups and developers to utilise a unique Digital Infrastructureto clear up India's difficult issues closer to paperless and cashless service providers. The government of India has smartly incorporated the erstwhile excluded population of rural India. Allowing them to take the benefits of credit and other banking services. India's own RuPay card built through India Stack has already doing wonders across the nation. The same digital technology is now being crossutilised for the world's largest health insurance scheme Ayushman Bharat Scheme that aims to provide healthcare coverage to 500 million people. It has been possible only because of India's strong digital base.
Based on the above reviews it can be said that the Government of India has started providing base for a modern economy based on digital infrastructure. The major removal of impediment of digital infrastructures particularly in banking sectors done is by making the Jan Dhan Yojana. It has allowed the penetration of banking system in the remote areas of the country. The results have clear significance towards increase of banking services in villages. It is