• January to March 2024 Article ID: NSS8489 Impact Factor:7.60 Cite Score:710 Download: 36 DOI: https://doi.org/41 View PDf

    The Role of Government and Policy in Encouraging Digital Payment Adoption Among MSMEs in India

      Dr. Vibha Vasudeo
        Professor & HOD, School of Studies in Economics, Maharaja Chhatarsal Bundelkhand University, Chhatarpur (M.P.)
      Utkarsh Khanna
        Ph.D.Scholar, School of Studies in Economics, Maharaja Chhatarsal Bundelkhand University, Chhatarpur (M.P.)
  • Abstract: The significant role of government policies and initiatives in accelerating digital payment adoption among Micro, Small, and Medium Enterprises (MSMEs) in India transformative journey of India's MSME sector towards digital payment integration, driven by government initiatives under the Digital India program, such as the DIGIDHAN Mission and the Unified Payments Interface (UPI) is the key areas which this paper examines. The surge in digital payment transactions and the pivotal role of platforms like UPI in this growth are underscored. Additionally, the study discusses the Reserve Bank of India's Digital Payment Index, indicating a deepening reliance on digital transactions across India, supported by increased internet and mobile phone penetration and government initiatives.

    The research also explores challenges, including digital literacy and access, security concerns, and the barriers to digital financial inclusion. Government policies and initiatives aimed at enhancing market access, technological empowerment, and financial inclusion for MSMEs, such as the Procurement and Marketing Support Scheme and the MSME Champions Scheme, are critically analyzed. 

    Keywords: Digital Payment Adoption, MSMEs, Government Policy, Digital India, Financial Inclusion.