Policy Update
Bhavya Jain
Introduction
DigiDhan Dashboard is a full-featured digital platform launched by the Ministry of Electronics and Information Technology (MeitY), Government of India. It has the function of monitoring, reporting, and analyzing digital payment transactions throughout the nation. The dashboard is a significant component of the overall DigiDhan Mission and a crucial tool in facilitating a cashless economy through real-time insights and data on alternative digital payment modes. It facilitates improved decision-making and policy making for promoting the shift toward digital payments in the country.
Background
The DigiDhan mission was launched in June 2017 by MeitY with the aim of promoting a cashless economy and effortless digital payments experience for all Indian citizens. The mission details the Government of India’s Digital India initiative aimed at making India a digitally empowered nation and a knowledge economy through increased digital access, inclusivity, and empowerment.
The DigiDhan Dashboard has been created as a single platform for aggregating and monitoring digital transactions through multiple payment modes as a means of supporting this vision. It collects multiple sources of data from the Reserve Bank of India (RBI), National Payments Corporation of India (NPCI), 110 banks (public, private, payments banks, regional rural, and foreign banks), 100 Smart Cities, multiple states, and central ministries. Collecting this wide range of data provides a holistic view of India’s digital payments ecosystem.
Functioning
The DigiDhan Dashboard is a real-time monitoring and reporting tool that monitors digital payment transactions via 16 payment modes, ranging from Unified Payments Interface (UPI), Immediate Payments Service (IMPS), debit and credit cards, Bharat Bill Payment System (BBPS), and BHIM Aadhaar, and so on. It has the following features:
- Live data on the quantity and value of transactions, by method of payment and geographic region (state and city).
- Evaluation of banks’ performance based on key performance indicators (KPIs), showing the best and worst performers in order to encourage constructive rivalry.
- Analysis of Point of Sale (POS) implementation and the correlation between transaction volumes
- Monitoring of mobile subscriptions and Aadhaar linkages to a bank account for assessing the spread of digital identity and mobile payments.
- Preparation of business intelligence reports including decline and transaction analysis, merchant acceptance trends and payment data by ministries.
- Individualized dashboards tailored for Smart Cities, states, and ministries to provide targeted insights specific to each administrative level.
The platform has been designed for ease of use and best accessed through existing web browsers such as Google Chrome (v50 and later), Firefox (v59.0b9 and later), and Internet Explorer 11 or later.
Performance
The DigiDhan Dashboard operates as a realtime monitoring and report mechanism, monitoring digital payments through 16 various payment modes, namely Unified Payments Interface (UPI), Immediate Payment Service (IMPS), debit and credit cards, Bharat Bill Payment System (BBPS), BHIM Aadhaar, etc. Ever since the launch of the dashboard, it has served as an important instrument for monitoring the tremendous growth in digital payments in the country. The government had a very ambitious goal of 25 million digital payments by March 2018 and exceeded the same by having more than 40 billion transactions take place. The dashboard has continually given granular data and assisted stakeholders in monitoring this growth efficiently.
Its extensive data collection has facilitated in-depth performance evaluation of banks and payment systems and also supported better service delivery and higher adoption. For example, incentives like MDR exemption on RuPay debit cards and UPI payments, as well as merchant and consumer rewards, have been monitored and evaluated on the dashboard to facilitate digital payment expansion. The dashboard also tracks the installation of core digital payment infrastructure like POS terminals and QR codes essential for building larger merchant acceptance networks. The integration of data from 100 Smart Cities and various ministries has also increased the dashboard’s strength in policy implementation and evaluation of their effects.
Impact
The DigiDhan Dashboard has significantly transformed the country’s digital payments scenario through:
- Promoting oversight of a transaction at any time offers a simple mechanism for imposing accountability and certainty through monitoring
- Assisting the Government efforts [government policies included “through targeted sensitisation initiatives such as DigiVAARTA, DigiDhan Melas, and Digital Payments Utsav
- Encouraging the drive towards a cashless economy through the facilitation of actionable theories which enabled the enhancement of the number of transactions and the number of system users.
- Expanding the purview of financial inclusion through the oversight of seeding of aadhaar and mobile numbers into traditional bank accounts to digital payments systems.
- Promoting bank and pay service provider competition utilizing cost monitoring management tools referred to as scorecards.
- Facilitating the integration of the JAM( Jan Dhan-Aadhaar-Mobile) initiative has taken the digitization of payment infrastructures in India a step forward.
The dashboard has also helped reduce leakages and enhance government expenditure transparency through digital means and has improved governance and the quality of public services.
Emerging Issues
In spite of the achievements, some challenges and upcoming issues persist:
- Digital Divide: While rural and remote areas behind by way of poor internet speeds and digital skills and infrastructure, urban and semi-urban areas have seen speedy take-up.
- Security Concerns: The widespread nature of electronic transactions has increased the threat posed by virtual fraud and information breaches and has made stronger security systems essential.
- Accuracy and Timeliness of Data: The collection and receipt of information from multiple stakeholders and the upkeep of accurate and updated information proves challenging at times and leads to time lags or discrepancies in reports.
- User Experience: Differences between user experience on payment platforms and in financial institutions can affect adoption rates.
- Merchant acceptance: Merchant acceptance is increasing, but for numerous small and micro-merchants, it remains on the fringe of the digital payments ecosystem because of cost or technical issues.
- Over Reliance on Specific Methods: Lack of alternative modes of digital payments can create risks in dependency on UPI and other single payment modes.
Recommendations
As a measure to solve the issues and enhance functionality of the DigiDhan Dashboard and the digital payment ecosystem as a whole, the following recommendations have been put forth:
- Expanding Digital Literacy Programs: The efforts toward increased adoption of digital payments through trainings and awareness must be or should be enhanced particularly in the rural regions.
- Improve cybersecurity procedures: User data, the accuracy of transactions, and system completeness in general should be strengthened through advanced security and ongoing surveillance.
- Strengthen Infrastructure: The availability of internet and POS systems in underserved areas should be enhanced in order to close the digital divide.
- Enhance Data Integrations: Reporting must be timely and reliable, so processes of receiving data from NPCI, banks, and other parties should be optimized.
- Promoting inclusive onboarding of merchants: Small merchants can be motivated through provision of easy onboarding procedures and other rewards so they can be included as part of the digital payments system.
- Expand modes of payment: Promoting the utilisation and issuance of varied modes of payments minimizes the reliance on a single platform.
- Extensive monitoring and recognition: Achieving ongoing system improvement through the deployment of the dashboard’s analytical functionalities and the resolution of the most important pain points of the users.
Way Forward
The DigiDhan Dashboard has certainly contributed in the march towards a cashless society. It would be useful if it incorporates advanced analytics features based on AI and ML for predictive analytics and anomaly detection in the future. Future collaborations would also assist in improving transparency and security through blockchain and other related advancements.
The government must also drive the collaborations between the banks, fintechs, and other players in the ecosystem and encourage them to create and evolve solutions for digital payments. In inclusive growth, the focus must also be on making sure sharp inequalities and the rural sector are equally supported. Currently, unrestricted promotional efforts coupled with incentive schemes and real-time data through the DigiDhan Dashboard will drive expansion for fulfillment of India’s vision of a completely digital economy.
References
- Ministry of Electronics and Information Technology, Government of India. DigiDhan Dashboard official site.
- Informatics, October 2020. “DigiDhan Dashboard: Monitoring Digital Payments.”
- MicroSave Consulting, 2024. “Impact Assessment of DigiDhan Mission on India’s Digital Payments Ecosystem.”
- National Informatics Centre. DigiDhan Dashboard About Page.
- NIC Blog, 2024. “Digital Payments driving the growth of Digital Economy.”
About the Contributor
Bhavya Jain is a Research Intern at Impri, Pursuing BA.LLB from Vivekananda Institute of Professional Studies, GGSIPU.
Acknowledgement
I would like to thank Ms. Aasthaba Jadeja for her utmost support and guidance.
Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.
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