DIGITAL INDIA & INDIAN

FINCANCIAL SECTOR

SUBMITTED BY:
KRITIKA (21)
MEGHANSHU (25)
NAMAN (27)
PARTH (31)
 DIGITAL INDIA
 Digital India is a campaign launched by the Government of India to ensure that
Government services are made available to citizens electronically by improved
online infrastructure and by increasing Internet connectivity or by making the
country digitally empowered in the field of technology.
 It was launched on 2 July 2015 by Prime Minister Mr. Narendra Modi. The
initiative includes plans to connect rural areas with high-speed internet
networks
 The focus is on making technology central to enabling change.
 It is an Umbrella Programme – covering many departments.
 It weaves together a large number of ideas and thoughts into a single,
comprehensive vision so that each of them is seen as part of a larger goal.
 VISION OF DIGITAL INDIA
 INFRASTRUCTURE
 High speed internet as a core utility
 Cradle to grave digital identity -unique, lifelong, online, authenticable
 Mobile phone & Bank account enabling participation in digital & financial
space
 GOVERNANCE & SERVICES ON DEMAND
 Seamlessly integrated across departments or jurisdictions
 Services available in real time from online &mobile platform
 Making financial transactions electronic & cashless
 DIGITAL EMPOWERMENT OF CITIZENS
 Universal Digital Literacy
 Universally accessible digital resources
 Availability of digital resources/services in Indian languages
1. Broadband Highways
 Thiscovers three sub components, namely Broadband for
All Rural, Broadband for All Urban and National
Information Infrastructure.

 Theproject cost is estimated to be approximately Rs.

32,000 Cr.

 UnderBroadband for All Urban, Virtual Network Operators

would be for service delivery and communication
2. Universal Access to Mobile Connectivity

 The initiative is to focus on network penetration and fill

the gaps in connectivity in the country.
 All together 42,300 uncovered villages will be covered
for providing universal mobile connectivity in the
country.
 DoT will be the nodal department and project cost will
be around Rs 16,000 Cr during FY 2014-18.
3. Public Internet Access Programme
 The two sub components of Public Internet Access Programme
are Common Service Centres and Post Offices as multi-service
centres.

 Common Service Centres would be strengthened and its number

would be increased from approximately 135,000 operational at
present to 250,000.

 A total of 150,000 Post Offices are proposed to be converted into

multi service centres.
 4. e-Governance
 Government Business Process Re-engineering using IT to improve
transactions is the most critical for transformation across
government and therefore needs to be implemented by all
ministries/ departments.

5. e-Kranti - Electronic Delivery of Services

 There are 31 Mission Mode Projects under different stages of e-
governance project lifecycle. Further, 10 new have been added
to e-Kranti by the Apex Committee on National e-Governance
Plan (NeGP) headed by the Cabinet Secretary in its meeting held
on 18th March 2014.
6. Electronics Manufacturing

 Taxation, incentives
 Economies of scale, eliminate cost disadvantages
 Focus areas –Set top boxes, Mobiles, Consumer & Medical
Electronics, Smart Energy meters, Smart cards, micro-ATMs
 Skill development
 Government procurement
7. Information for All

 Open Data platform and online hosting of information &

documents would facilitate open and easy access to information for
citizens.
 Government shall pro-actively engage through social media and web
based platforms to inform citizens. MyGov.in has already been launched
as a medium to exchange ideas/ suggestions with Government.
 Online messaging to citizens on special occasions/programs would be
facilitated through emails and SMS.
8. IT for Jobs
 Over 1 Cr students from smaller towns & villages will be trained for IT
sector jobs over 5 years.

 3 lakh service delivery agents would be trained as part of skill

development to run viable businesses delivering IT services.

 5 lakh rural workforce would be trained by the Telecom Service Providers

(TSPs) to cater to their own needs. Department of Telecom (DoT) would
be the nodal department for this scheme.
9. Early Harvest Programmes
 T Platform for Messages
A Mass Messaging Application has been developed to cover elected
representatives and all Government employees. 1.36 Cr mobiles and 22 Lakh
emails are part of the database.
 Government Greetings to be e-Greetings
Basket of e-Greetings templates have been made available. Crowd
sourcing of e-Greetings through MyGov platform has been ensured. E-
Greetings portal has been made live on 14th August 2014.
 Wi-Fi in All Universities
All universities on the National Knowledge Network (NKN) shall be
covered under this scheme. Ministry of HRD is the nodal ministry for
implementing this scheme.
About Financial Sector

 Financial Sector is the backbone of the economy and it is indeed

critical to nurture the growth of this important sector in order to
ensure sustained growth rate.
 It is the 2nd largest component after trade, hotels, transport and
communication all combined together in GDP. GDP
contribution is approximately 15 %.
Why Is the Financial Sector Important?

 The financial sector is important to macroeconomics because of

its role in channeling savings back into the circular flow.
 Savings are returned to the circular flow in the form of consumer
loans, business loans, and loans to government.
Components of Financial Sector

 Banking Sector
 Insurance Sector
 Other Financial Services
1. Capital Market
2. Mutual Fund
Banking Sector

 Banking stands second in terms of employment (average share of

28%). The banking sector is projected to create upto 2 million
new jobs in the next 5-10 years, driven by issuance of new license
and efforts to expand financial services into rural areas.
 The Indian banking system has been continuously expanding
with the number of SCB branches increasing at a CAGR of 7.8%
during FY09 to FY13. The Indian banking system has been
continuously expanding with the number of SCB branches
increasing at a CAGR of 7.8% during FY09 to FY13. The private
sector banks have been expanding at a faster rate (7.1% CAGR in
number of branches) compared to public sector banks (- 1.1% )
and foreign banks (-10%).
Technological Changes in Banking Sector

 ATMs
 Mobile Banking
 Net Banking
Insurance
 An arrangement by which a company or the state undertakes to provide
a guarantee of compensation for specified loss, damage, illness, or
death in return for payment of a specified premium. The insurance
industry of India consists of 53 insurance companies of which 24 are in
life insurance business and 29 are non-life insurers.
 Among the life insurers, Life Insurance Corporation (LIC) is the sole
public sector company.
 The country’s insurance market is expected to increase over the next
10 years.
Other Financial Services
Capital Market
 A Capital Market is a market for Securities (debt or equity),
where business enterprises (companies) and governments can
raise long-term funds.
 The Primary Market is that part of the capital markets that deals
with the issue of new securities
 Companies, governments or public sector institutions can obtain
funding through the sale of a new stock or bond issue for Growth
& Expansion
 The Secondary Market, also known as the Aftermarket, is the
financial market where previously issued securities and financial
instruments such as Stock & Bonds are bought and sold.
Mutual Funds
 A Mutual Fund is a professionally managed type of collective
investment scheme that pools money from many investors and
invests typically in investment securities (stocks, bonds, short-
term money market instruments, other mutual funds, other
securities, and/or commodities such as precious metals)
 The mutual fund will have a fund manager that trades (buys and
sells) the fund's investments in accordance with the fund's
investment objective.
 Unit Trust of India (UTI) established in the year 1963 by an act
of ParliamentComplete Monopoly.
 Entry of private sector fund - permission given to private sector
funds including foreign fund management companies to enter the
mutual fund industry in 1993.
 number of schemes offered by Indian mutual funds from 403 schemes in 2002-03 to 1294
schemes in 2011-12 has shown the inclination of investors towards mutual fund.
 The Indian mutual fund industry is in its growth phase and possesses a tremendous scope.
 The main reasons for poor growth of mutual fund industry in India is the lack of awareness
for mutual funds and lack of trust on mutual fund companies.
Impact of Digitization on Financial
sector
 eKYC is giving a big push to banking and financial services, e-learning addresses the big
gaps in our education system, DigiLocker ends document-fraud to a large extent,
 When India does 10 million eKYCs using the Aadhaar platform every month, something has
changed. When digital payments on the phone using mobile wallets primarily rise to15% of
those made by debit and credit cards—in terms of volume, it is more that 60%under 13
million government documents—like Aadhaar and PAN cards, Class X marksheets and
driving licences—were uploaded into the DigiLockers .
 In the traditional KYC model, the mutual fund company needs to have a
representative/office to get physical signatures; the cost of the office/representative then
decides just how fast the fund can grow and what size of customers it finds attractive.
Substitute this with eKYC, where the signature is replaced by an OTP over the phone—
linked to Aadhaar number—and the banking and finance business is ready for its next big
leap. government delivers digitally-signed certificates into your account—marksheets, land
records, etc, over a period of time—there is much less of a chance of the documents being
forged, making it that much easier for banks to give loans, employers to hire people and so
on.