India’s policies for a digital economy are taking strong positive shape. Last month, the Justice Srikrishna Committee released its Report on Data Protection as well as a draft Personal Data Protection Bill 2018. The Commerce Task Force also released a draft e - commerce policy for stakeholder consultation. There are a multitude of issues emerging and we have compiled opinions and views on these policies in our blog post “Policies for India's Digital Economy - an update”, as an easy reference resource, which will be updated as we go on.

The process of new legislation has begun in full earnest. Some issues are thorny, for instance the stress on data localisation will weigh on service providers and may increase costs. In fact, while framing rules, it is crucial that the government remembers not to overburden service providers with mandates that will hit innovation. Regulatory overload can backfire on the objective of financial inclusion, as servicing low income customers may become less attractive.

Meanwhile, Payments Banks are running into trouble as RBI has found instances of the banks running afoul of regulations. While Airtel Payments Bank was earlier barred from adding new customers, now Fino and Paytm face restrictions. Fino has had accounts with balances greater than the stipulated INR one lakh and Paytm has had e - KYC issues - See Bloomberg Quint, August 1, 2018. The RBI needs to evaluate the reasons behind the non - compliance and have an open mind to reviewing the regulations, if needed. Disruptions in a new business raise uncertainty and do not serve the purpose of financial inclusion.

Finally, when it comes to the digital economy, this piece from MicroSave is a must read – “Amid the excitement of app - based techs, we need to plan for the 2G and no G world if we are to address Sustainable Development Goals for rural populations through technology.” (The white spaces of the digital divide: 3G+ haves and have-nots, July 2018)


• Closing India's Gender Gap in Financial Inclusion - Policy Brief, June2018
• India's Direct Benefit Transfer Programme - An Update - Policy Brief, May 2018
• ICFI Blog: Policies for India's Digital Economy - an update, August 2018
• ICFI Blog: Digital payments pick up in India, July 6, 2018
Pradhan Mantri Jan Dhan Yojana Progress Report
RBI Electronic Payment Systems – Data


Smaller towns make 50% of user base: Paytm

Investors bet on small finance banks as financial inclusion makes way

Alternate lending platforms are fixing India's financial inclusion problem, becoming enablers for SME funding

Regulators, government need to support ATMs for financial inclusion: PwC

How RBI Is Solving P2P Lending Issues And India's Credit Woes

India's Social Revolution

WhatsApp Pay Is No More Beta, Govt Says It Can’t Launch Without India Team And Office

Financial Inclusion: Is the Glass Half Empty or Half Full?

Protecting Consumers Means Thinking Like Consumers

Bringing Health Microinsurance to Kenyans via Mobile Phone

Mobile internet access – the next frontier for ‘Tech’

2017 Global Findex: Behind the Numbers on Bangladesh


Customer-Centric Guide, CGAP, July 2018

Exploring Blockchain Applications to Agricultural Finance, CGAP, July 2018

SHGs Should Balance or Break, MicroSave, July 2018

What do informal groups teach us about what poor people want in their financial services?, MicroSave, July 2018

Why are friends and family central to the financial choices of Kenyans?, MicroSave, July 2018


Editor: The Indicus Centre for Financial Inclusion was launched in 2011 to distil and disseminate information on accelerating the poor’s access to high-quality financial services. ©Indicus Centre for Financial Inclusion. All rights reserved. 5th August 2018.

Copyright © 2015 - All Rights Reserved