Digitization of payments system comes in handy at crunch time

NEW DELHI : The digitization of the payments system, and the coming together of the Jan Dhan-Aadhaar-Mobile (JAM) trinity, in the last six years have not only pushed the government’s financial inclusion agenda, but also come in handy during the coronavirus pandemic.

New-age digital payment modes, such as Unified Payments Interface (UPI), Aadhaar-Enabled Payment System (AePS) and Bharat Bill Payment System (BBPS), are playing a crucial role in maintaining social distancing, while ensuring seamless cash transfer to beneficiaries under the recently announced Pradhan Mantri Garib Kalyan Yojana (PMGKY).

Official data shows that as on 13 April, more than 320 million beneficiaries had been given cash support through direct benefit transfers (DBT) amounting to ₹29,352 crore, which is part of the ₹1.7 trillion PMGKY package, announced by the finance ministry on 26 March to help the poor battle the impact of covid-19.