THE GIST of Editorial for UPSC Exams : 23 March 2020 (Can digital tools trigger behavioural shift in how Indians save?(Indian Express))

Can digital tools trigger behavioural shift in how Indians save?(Indian Express)

Mains Paper 3:Economy 
Prelims level:  Unified Payments Interface
Mains level:Behavioural shift in the Indian economy 

Context:

• India and its central bank have done a tremendous job so far, to reach every nook and corner of the country to ensure rural branches or bank correspondents to cover every village and district. 
• This is India’s chance to build on that success by using digital technologies and platforms such as WhatsApp.

Evolution of the Unified Payments Interface:

• In the last few years, the Unified Payments Interface (UPI) is another such innovation which has demonstrated the promise of digital transactions. 
• These were just the first steps in a series of reforms that brought India out of a crisis and into an era of sustained economic growth. 
• In the last few years, the Unified Payments Interface (UPI) is another such innovation which has demonstrated the promise of digital transactions. 
• India’s technology leaders have a unique architecture that can scale to serve hundreds of millions of users and bring more people into the financial system to enjoy all the benefits of a digital economy. 
• UPI is also the first example of India’s public digital infrastructure which can go global and help solve for many complex problems related to poverty and financial inclusion.
• In India, many of those working in urban centres support their families who continue to live in rural India. 

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Rise in the household consumption:

• There are many studies which show that those who are working as construction labourers in cities like Mumbai, save a large chunk of their wages to send home through relatives or friends travelling back for a minimal fee. 
• UPI and the Digital India initiative, sending and receiving money over WhatsApp is now as easy as making a phone call or sending a message and it is free.
• Today people can send money using dozens of apps to one another or make a purchase at a local shop. 
• In the future, we believe people will be able to do so much more, helping people and our overall economy. 
• As per the latest Economic Survey released earlier this year, household savings has declined steadily over a six-year period of 2012-17 from over 7 to over 6.5 per cent. 
• While this is one reason why household consumption is up, it is also a clear indication that for Indian households the potential of savings and turning them into investments is quite high. 

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Way ahead:

• Research shows that access to financial products and services empowers people to achieve their dreams and prohibits them from falling into poverty. 
• India and its central bank have done a tremendous job so far, to reach every nook and corner of the country to ensure rural branches or bank correspondents to cover every village and district. 
• This is India’s chance to build on that success by using digital technologies and platforms such as WhatsApp.

Conclusion:

• We are charting a unique path forward. 
• Together we can build a more prosperous and Digital India.

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Prelims Questions:

Q.1)With reference to the Rajya Sabha, consider the following statements:

1. Under article 80 of the Constitution, Rajya Sabha is composed of not more than 250 members. 
2. 16 members are nominated by the President of India from amongst persons who have special knowledge or practical experience in respect of such matters as literature, science, art and social service.  

Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Answer................................

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Mains Questions:
Q.1) Can digital tools trigger behavioural shift in how Indians save? Comment.