Content:

1. UPI: Revolutionising Digital Payments in India
2. Benefits under E-Shram Card

UPI: Revolutionising Digital Payments in India

Context : Processed over 16 billion transactions worth ₹23.49 Lakh Crores in October 2024

Relevance : GS 3 (Economy )

Introduction

• Launched: 2016 by NPCI (National Payments Corporation of India).
• Objective: Promotion of digital economy .

Technological Framework

• Connects over 600 banks using mobile based platform for seamless financial transactions anywhere and anytime.
• Security: Single Click 2–Factor Authentication ensures secure payments.

Adoption and Growth

• Initial Phase: Moderate adoption; significant boost post-2017 demonetisation.
• Pandemic Impact: Accelerated usage during Covid–19 for contactless payments.
• E-Commerce :Rising trend of online shopping promoted digital payments.

Achievements (October 2024)

• Transactions: Processed more than16.58 billion transactions worth ₹23.49 Lakh Crores.
• Year-on-Year Growth: 45% increase from October 2023.
• India contributes 49% of real time global transactions.

Key Features

• Accessibility: Instant money transfers, 24/7 availability.
• Unified Access: Integration of multiple bank accounts in a single app.
• Privacy and Security: Virtual addresses and robust authentication.
• Payment Modes: QR codes, in-app, and merchant payments.
• Cashless Economy: Encourages alternatives to traditional cash payments.

Global Reach

• International Expansion: Functional in countries like UAE, Singapore, Bhutan, Nepal, and France.
• Strategic Growth: BRICS expansion and remittance facilitation.
• Future Vision: Strengthen India’s leadership in global digital payments.

Future Prospects

• Credit Integration: Combining UPI with RuPay credit cards.
• Policy Enhancements: Continuous technological and regulatory upgrades.
• Rural Inclusion: Expanding reach to underserved regions.
• Global Leadership: Setting benchmarks in digital payment systems worldwide.

Benefits Under E-Shram Card

Context : As on 26th November 2024, over 30.42 crore unorganised workers have registered on eShram portal.

Relevance : GS 2 (Governance )

Background:

• Initiated: August 2021 by the Ministry of Labour and Employment.
• Objective: To create a National Database of Unorganised Workers (NDUW) and streamline the implementation of social security schemes for workers in the unorganised sector, such as construction workers, migrant workers, gig workers, and platform workers.

Eligibility Criteria:

• Requirements:
  • Aadhaar number and an Aadhaar-linked active mobile number.
  • Active bank account.
• Exclusions: Not applicable to members of EPFO, ESIC, or NPS.
• Age Range: 16 to 59 years.

Benefits:

• Accidental Insurance: ₹2 lakh coverage under Pradhan Mantri Suraksha Bima Yojana (PMSBY).
• Social Security Schemes: Integrated benefits, including pensions, health insurance, and skill development programs.

Integration with Other Portals:

1. National Career Service (NCS):
   1. Use of Universal Account Number (UAN) for job opportunities.

• Skill India Digital Portal:
  • Access to skill enhancement programs and apprenticeship opportunities.

• myScheme Portal:
  • One-stop search for government schemes based on user eligibility.

One-Stop-Solution Launch:

• Introduced: 21st October 2024.
• Purpose: To unify various welfare schemes for unorganised workers into a single, user-friendly platform.

Integrated Schemes:

• 12 key schemes, including:
  • PMSBY
  • PM Jeevan Jyoti Bima Yojana (PMJJBY)
  • Ayushman Bharat
  • PM SVANidhi
  • PMAY (Urban & Gramin)
  • MGNREGA

Achievements:

• Registrations: Over 30.42 crore unorganised workers as of November 2024.
• Data Utilisation: Facilitates targeted policy-making and scheme execution.

Future Prospects:

• Expanding Social Security: Adding more schemes to cover broader benefits.
• Skill Development: Enhanced focus on apprenticeship opportunities.
• Policy Formulation: Leveraging worker data for designing tailored policies.