RTGS (Real-Time Gross Settlement) facility becomes operational 24X7 from 12:30 am tonight: RBI Governor Shaktikanta Das pic.twitter.com/BWTn5EVRmn

— The Times Of India (@timesofindia) December 13, 2020

From 14 December 2020, Real-Time-Gross-Settlement payments (RTGS transactions) will be operational 24/7 according to the Reserve Bank of India (RBI). The move will surely provide a boost to the digital payments industry in India. This move may help bridge the gap towards a greater proliferation of digital payments, but how important are they?

Benefits of RTGS

There are many benefits to RTGS transactions, which explains their use as an example of the flourishing digital payments industry. Their ease of use may encourage more people to use them, which would expedite the move towards a digital economy of India. July 2019 already saw charges being dropped for those using such payment methods, which would also help encourage more people to opt to use them.

There are still barriers to RTGS, however. While the round the clock service means that people are more likely to consider it to be reliable, not all banks are able to use the technology. There has been a big push by RBI for those institutions that are RTGS-enabled to educate their customers about the service and benefits of the technology.

Digital Payments Industry Success

Offering digital payment methods can also reflect the nature of the business and the type of industry they are offered in. Digital payments have risen in the online casino industry. As the range of slots at NetBet shows, the traditional concept of slot games has been infused with digital technology to add video footage and animation to the games. So, it’s only fitting that the methods used for payment are also reflective of the digital age. Players can deposit using PayPal, Skrill, and Neteller, for example.

Similarly, digital payments represent the autonomy and scope that smaller businesses have. Their flexibility means that they can choose how customers engage with them. Many smaller businesses have already opted for digital-only banks. So, it makes sense that sites like Etsy can offer payment terms using e-wallets. This digital option may suit both customer and retailer and shows the benefit of choosing a small business.

Source: Pixabay

India’s Payment Future

The Digital India campaign and a reflection of global trends means that there will be a stronger push towards digital payments. There are some issues to iron out though. Certain areas lack internet, meaning people are unable to use digital payment methods. Older people are also less likely to adopt the technology.

India’s government has also been pushing for a cashless economy since 2016. Government backing has seen a rise of fintech companies and those with ideas on cashless payment functions increase. The digital payments industry will also continue to benefit from our reliance on the internet and being able to pay for things and buy things online. With cash not being a factor in many of our transactions anyway, the industry could be better served.

Ultimately, RTGS looks to help contribute towards a digital economy of India. Digital payment alternatives are trending upwards worldwide. So, embracing them now in the fairly early stage of adoption can only be beneficial for India. Digital payments may seem new now, but judging by the global economy, it’s clear that they’re going to be influential in the years to come.