ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Digital EconomySubscribe to Digital Economy

Digital Economy: India's Account Aggregator System Is Plagued by Privacy and Safety Issues

In the digital economy, data inequity adversely affects consumers in the financial sector, especially the ones limited by choices due to their geographic location and/or socioeconomic status. To tide over these problems, India introduced the account aggregator system in 2016, enabling financial institutions to access information of individuals in exchange for offering financial instruments. Despite the novelty and benefits that come with it, there have been issues surrounding privacy and safety of individual’s financial information.

Demonetisation through Segmented Markets: Some Theoretical Perspectives

The decision to demonetise 86% of India’s currency has been widely and substantially debated by notable scholars of political science and economics. This article wishes to add to that debate, by focusing on macroeconomic theory and how the policy decision affects the organised and unorganised sectors of the Indian economy­—provided certain assumptions remain in place. The following analysis is based on the money-multiplier theory and the segmented markets model of economic and monetary policy analysis.

Doing More with Less

The current focus on financial inclusion has opened up solutions to reduce leakages in central and state government schemes. For these solutions to have a sustainable impact, deeper issues in public fund management must be addressed. These issues revolve on three key challenges: "first-mile" problems of transferring central and state funds to local implementation agencies in a timely, efficient and transparent manner; "last-mile" problems of sending benefits to beneficiary or vendor bank accounts without delays; and "beyond-the-last-mile" challenges of ensuring rural beneficiaries have adequate access to remote banking services. This paper reviews these three challenges and proposes a new public finance management system, namely, JAM+. The authors believe that these reforms have the potential to reduce India's fiscal deficit by ₹1 lakh crore.
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