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International Journal of Trend in International Journal of Trend in Scientific Research and Development (IJTSRD)Research and Development (IJTSRD)
International Open Access JournalInternational Open Access Journal | www.ijtsrd.comwww.ijtsrd.com

ISSN No: 2456 ISSN No: 2456 - 6470 | Conference Issue – ICDEBIICDEBI-2018

INTERNATIONAL CONINTERNATIONAL CONFERENCE ON DIGITAL ECONOMY AND FERENCE ON DIGITAL ECONOMY AND

ITS IMPACT ON BUSINESS AND TS IMPACT ON BUSINESS AND INDUSTRYINDUSTRY

Organised By: V. P. Institute of Management Studies & Research, SangliOrganised By: V. P. Institute of Management Studies & Research, SangliOrganised By: V. P. Institute of Management Studies & Research, Sangli

Impact of Digitalization on tImpact of Digitalization on the Indian Financial Systemhe Indian Financial System

Dr. Amardeep D. Jadhav
Chhatrapati Shahu Institute of BChhatrapati Shahu Institute of Business Education and Research (CSIBERCSIBER)
(An Autonomous InstituteAutonomous Institute), Kolhapur, Maharashtra, India

ABSTRACT I. INTRODUCTION
Digitalization or digital transformation is more than Digitalization or digital transformation is more than India is the fastest growing economy in the world. India is the fastest growing economy in the world.
just adopting cloud, social, mobile or big data just adopting cloud, social, mobile or big data The Indian economy is the seventh largest economy in The Indian economy is the seventh largest economy in
technologies. It is about using technology to create technologies. It is about using technology to create
new values or change the business model. Digitally values or change the business model. Digitally the world measured by GDP and third largest by the world measured by GDP and third largest by
transformed businesses typically create an ecosystem transformed businesses typically create an ecosystem Purchasing Power Parity (PPP) after US and China. Purchasing Power Parity (PPP) after US and China.
where all market participants and consumers where all market participants and consumers The Indian economy has seen a lot of changes from The Indian economy has seen a lot of changes from
participate. 1st July, 2015 is a day when an initiative participate. 1st July, 2015 is a day when an initiative being self-reliant to opening its door for global trading reliant to opening its door for global trading
was being taken by our honorable Prime Minister was being taken by our honorable Prime Minister by allowing LPG(Liberalization, Privatization and by allowing LPG(Liberalization, Privatization and
Narendra Modi towards “making India Digital”. The Modi towards “making India Digital”. The Globalization) in 1991 under the then Finance Globalization) in 1991 under the then Finance
campaign aimed to connect rural areas with high campaign aimed to connect rural areas with high Minister Dr. Manmohan Singh. And since then there Minister Dr. Manmohan Singh. And since then there
speed internet network and to improve the digital speed internet network and to improve the digital is no seeing back. According to the latest Economic is no seeing back. According to the latest Economic
literacy. Indian economy is growing at a fast pace that literacy. Indian economy is growing at a fast pace that Survey 2017-18, the Indian economy will continue to 18, the Indian economy will continue to
requires the people to be financial literate to take requires the people to be financial literate to take grow more than 7 per cent in 2018grow more than 7 per cent in 2018-19. According to
judicious decisions. After this digitalization, the us decisions. After this digitalization, the Fitch Ratings Agency, India's Gross Domestic Fitch Ratings Agency, India's Gross Domestic
financial transactions have to be done through financial transactions have to be done through Product (GDP) will likely slowly accelerate to 8 per Product (GDP) will likely slowly accelerate to 8 per
internet. So, Digital financial literacy is gaining internet. So, Digital financial literacy is gaining cent by FY 2018-19, driven by the gradual 19, driven by the gradual
importance. This paper analyses the importance of importance. This paper analyses the importance of implementation of f s structural tructural reforms, eforms, h
higher igher
r
financial literacy in today’s world. The finding of the financial literacy in today’s world. The finding of the disposable income and improvement in economic disposable income and improvement in economic
study will identify the obstacles in the execution of will identify the obstacles in the execution of activity. The recent steps of the Indian government activity. The recent steps of the Indian government
various programmes to make India financial literate various programmes to make India financial literate have shown positive results in the growth of the GDP. have shown positive results in the growth of the GDP.
and strategies to execute these policies effectively and and strategies to execute these policies effectively and According to a Goldman Sachs report released in According to a Goldman Sachs report released in
efficiently. There are some financial services efficiently. There are some financial services September 2015, India could grow at a potential 8 per grow at a potential 8 per
providers that have taken on a back seat approach anproviders that have taken on a back seat approach and cent on average during from fiscal 2016 to 2020 cent on average during from fiscal 2016 to 2020
observe the developments in this digitalization space. observe the developments in this digitalization space. powered by greater access to banking, technology powered by greater access to banking, technology
This is probably a safer approach given the risks and This is probably a safer approach given the risks and adoption, urbanization and other structural reforms.adoption, urbanization and other structural reforms.
costs involved. On the other extreme end, there are costs involved. On the other extreme end, there are
also financial service providers who have yet to also financial service providers who have yet to The 1990s also saw the entrance of technology in The 1990s also saw the entrance of technology in
embark on any digitalization strategy. Howevembark on any digitalization strategy. However, this India and people were introduIndia and people were introduced with the use of
does not mean they will not be able to leapfrog ahead does not mean they will not be able to leapfrog ahead personal computers and gradually the automation took personal computers and gradually the automation took
every sector by storm and now we can see the virtual very sector by storm and now we can see the virtual
once they have strategized their digital strategy.once they have strategized their digital strategy. e
w
world that exists and anything can happen in it from orld that exists and anything can happen in it from
KEYWORD: Indian economy, Digital India, Indian economy, Digital India, uniting the world to initiate a war if not handled uniting the world to initiate a war if not handled
Financial literacy, Financial System properly. But in a developing country like India the ing country like India the
p
process of digital soundness has been slow and got a rocess of digital soundness has been slow and got a
huge push to go digital when the demonetization uge push to go digital when the demonetization
h

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