CA Ruchika Bhagat, MD, Neeraj Bhagat & Co.

Ruchika Bhagat carries the legacy forward with an aim to promote Strength, Inspiration, Entrepreneurship, and a focussed vision to take the business to new heights, after Mr. Neeraj Bhagat- Founder, Neeraj Bhagat & Co. passed away on 4th May 2021.  Neeraj Bhagat & Co. which is an ISO 9001: 2008 UKAS certified organization was founded by Late. Mr. Neeraj Bhagat in 1997. Since its inception in July 1997, Neeraj Bhagat & Co has been serving its clients successfully with a commitment towards adding value and optimizing their business goals.  As an integrated team of financial analysts, payroll specialists, and certified business accountants, the Company shares skills, insights, and resources, and is well known for providing top-notch accounting support to industry clients based on a deep understanding of business.  Our clients include domestic and international entities of various sizes across diverse industries worldwide.



Digital payments in India have increased rapidly in the past few years. This growth has been fuelled by the emergence of new players in the payments ecosystem, technological innovations, customer experience initiatives, and predictable legal changes.

Payment and settlements data published by the RBI in its latest annual report show that the total amount of digital payments for cashless payment transactions increased from 92.5% in 2017 to 98.5% in 2020-2021. Of the various digital payment options for one-time payments, NEFT by amount and UPI by volume are the most common methods.

Data analysis from the RBI Monthly Bulletin shows that digital payments have proven useful during the COVID-19 lockdown period with digital payments increasing its share of non-cash payments. India is at the forefront of global digital payments innovation and this trend will continue in the coming years. The global payment space is being explored and Cross Border Remittances is an example of some stand out initiatives taken by RBI to drive continuous innovation. 

Continuous growth and beyond

According to a survey from fintech firm Razorpay, digital transactions have continued to rise at a rapid pace in the country, with increased popularity in tier II and III municipalities. Digital transactions increased by 80% from November 30, 2020 to August 6, 2021, compared to the preceding 250-day period, reflecting the country’s high acceptance and implementation of digital payments, according to the research. Consumers and merchants both want transactions to be quick, private, and frictionless, but retailers also need a mechanism to verify that the person on the other end of the transaction intends to pay for the goods or services being sold. According to Grand View Research, the global digital payments market is expected to increase at a rate of 19.4 percent per year between 2021 and 2028, with ecommerce sales playing a role in this expansion.

Digital Payments in India to grow to 71.7% of all payment transactions by 2025

According to ACI Worldwide, with 25.5 billion real-time payments transactions, India remained in first place, followed by China with 15.7 billion. It also speculated, real-time payments will account for more than half of all electronic transactions by 2024. By 2025, this will rise to 71.7 percent.

Global Trend: India’s digital payment platforms which were built in-house, have the potential to go global.

Over the last decade, India has been at the forefront of digital payments innovation, with Aadhaar, a biometric-based national identity, UPI – a real-time payments system that uses virtual IDs associated with bank accounts, Aadhar Enabled Payment System (AePS) for biometric authentication, FASTag for cash-free toll payments.

Innovative technologies and interoperability are increasingly being used in India to handle many challenging problems. Other nations are now looking to India to adopt best practises in dealing with their own country-specific difficulties, and the RBI has received numerous requests in this regard. This is a good opportunity to look into interoperability with other countries and internationalisation of standards and payment solutions that have already been developed.

While keeping up with the rapidly changing digital payments industry might be difficult, the changes we’re seeing are really beneficial to both retailers and consumers. A renewed emphasis on convenience and security will secure the global ecommerce market’s long-term viability and greater earnings for merchants of all sizes. Rather than becoming overwhelmed by the frequent changes, merchants could consider partnering with solution providers to make fraud protection (and a seamless checkout experience) a full-time job.

Transaction security is equally important and so the customer awareness.

As the country moves towards digital payments, it is critical to understand the challenges that will arise. When it comes to digital payments, one of the most difficult and crucial aspects is security. Strengthening cybersecurity to build a secure digital payments ecosystem is critical in today’s tech-powered world. This quick expansion, however, is not without problems, and it raises concerns about data breaches, false UPI payment connections, and fake cashbacks, all of which can lead to fraud. According to a recent data provided by credit agency TransUnion, alleged fraudulent digital transaction attempts against Indian businesses increased by 28.32 percent in 2020-21 over the previous year. 

The growing popularity of digital payments among both consumers and institutions necessitates continued efforts by regulators and authorities concerned on two fronts: boosting electronic currency penetration while protecting the privacy and data of users. Consumer protection knowledge, which includes dangers such as phishing, dodgy links, and SMS spoofing, is rightfully being emphasised on. Retailers must stay up with not only payments technology and consumer preferences, but also the solutions available to enable safe, secure, and seamless checkouts for their consumers and their businesses. 

Some preventive measures to keep in mind while making a digital payment:

  • Usage of Trustworthy Payment Apps 
  • Never share your Banking Password/PIN/OTP with anyone 
  • Avoid public computers and Wi-Fi Networks
  • Do Not save your card details 
  • Use a private window for transactions 


According to the findings of a survey by financial technology firm FIS, the country’s e-commerce business is predicted to expand 84 percent to $ 111 billion by 2024 as Covid-19 pushes more Indian buyers online. FIS provides technology to merchants, banks, and capital market organisations all across the world.

The Indian e-commerce business has seen a big rise because to covid-19, and there is substantial space for future expansion. E-commerce is no longer limited to traditional websites, and physical retail has become more integrated with the digital world. Consumers want hassle-free and convenient shopping experience whether they are purchasing through an app, through their social feeds, or in person.

Wallet firms are looking into the possibility of providing credit and payment banking services. FinTechs, which began as mobile wallets, today offer a variety of services ranging from rapid loans to wealth management, digital gold buying and selling, and digital insurance. PSPs (Payment Service Providers) intend to expand their product offerings by offering lending services. In collaboration with banks and non-banking financial organisations, another FinTech has developed post-paid choices, personal loans, and merchant cash loans (NBFCs). Furthermore, legislative actions have prompted several start-ups to investigate and build solutions that would boost the adoption of digital payment systems, particularly among India’s underserved population. Many new entrants will emerge in the future years, pursuing advances in offline payments, voice-recognised payments, and other areas.

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