The Government of India, along with the Reserve Bank of India (RBI) and the
National Payments Corporation of India (NPCI), has launched multiple initiatives
to promote digital payment transactions and enhance financial inclusion across the country.
Key Initiatives for Digital Payments
- Incentive scheme for promotion of RuPay Debit Cards and low-value BHIM-UPI (P2M) transactions.
- Payments Infrastructure Development Fund (PIDF) to deploy digital payment infrastructure in underserved regions.
- Device binding between customer’s mobile number and device for added security.
- Two-factor authentication via PIN and daily transaction limits to prevent fraud.
- AI/ML-based fraud monitoring solutions provided by NPCI to all banks.
- Awareness campaigns through SMS, radio, and other media to prevent cyber-crimes.
Regulation & Transparency for Cooperative Societies and Microfinance Institutions
| Initiative | Details |
|---|---|
| Regulatory Framework for Microfinance | RBI mandates a board-approved transparent interest rate model covering cost of funds, risk premium, and margin. |
| Loan Definition Simplification | Simplified the definition of microfinance loans and removed quantitative restrictions like cycle-wise limits and minimum tenures. |
| Loan Utilization Flexibility | The 50% mandatory allocation for income generation has been removed, allowing loans for medical, education, and income-smoothing needs. |
These measures reflect the government’s continued efforts to strengthen digital financial systems,
increase accessibility for rural and underserved regions, and ensure transparency in the microfinance sector.
Source: Press Information Bureau (PIB)
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