Digital transactions under public services surges 56% in 2024: RBI Deputy Governor

In 2024, the average number of daily e-transactions for accessing public services in India increased by 56 percent compared to the previous year. Additionally, a total of Rs 6.9 lakh crore has been transferred through the digitally-powered Direct Benefit Transfers (DBT) across 314 schemes, benefiting 176 crore recipients in the financial year 2023-24, according to RBI Deputy Governor Michael Patra.

Speaking at the conference titled ‘Digital Technology, Productivity and Economic Growth in India,’ Patra noted that these DBTs have resulted in estimated cumulative cost savings of Rs 3.5 lakh crore up to March 2023.

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The RBI deputy governor further stated that India is uniquely positioned to unlock new growth avenues and optimize existing ones with its digital public infrastructure (DPI), a vibrant information technology (IT) sector, and a burgeoning youth population, including one of the largest AI talent bases.

Forecasts suggest that generative AI will contribute $359-438 billion to India’s GDP by 2029-30. Indian firms’ integration of AI into production processes has increased from 8 percent in 2023 to 25 percent in 2024. India has also committed Rs. 1.25 trillion towards its semiconductor industry development, he added.

 India is at the forefront of the digital revolution. Financial technology (FinTech) is speeding up digital payments. The India Stack is expanding financial inclusion, galvanizing banking infrastructure and public finance management systems covering both direct benefit transfers and tax collections.

Vibrant e-markets are springing up and expanding their reach, Patra explained. “It is estimated that the digital economy currently accounts for a tenth of India’s GDP; going by growth rates observed over the past decade, it is poised to constitute a fifth of GDP by 2026,” he added.

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