AICTE ACTIVITY REPORT

“Facilitating 100% DigitizedMoney Transactions”

Mrs. Chetana R

Assistant professor
Dept. of ECE, SJBIT

DEPARTMENT OF ELECTRONICS AND COMMUNICATION

ENGINEERING
Department of Electronics and Communication Engineering

Certified that the AICTE Activity entitled “Facilitating 100% Digitized Money Transactions”
carried out by JAYANTH N [1JB19EC033] a bonafide student of SJB Institute of Technology
in partial fulfilment for the award of BACHELOR OF ENGINEERING in ELECTRONICS
AND COMMUNICATION ENGNEERING of the Visvesvaraya Technological University,
Belagavi during the academic year 2022-23. It is certified that all corrections/suggestions
indicated for Internal Assessment have been incorporated in the Report deposited in the
Departmental library. The AICTE Activity Points have been approved as it satisfies requirements
in respect to AICTE Activity Points prescribed for the said Degree.

Signature of Guide Signature of HOD Signature of Principal

Mrs. Chetana R Dr. Chandrappa D N Dr. K V Mahendra Prashanth
Assistant professor Professor & Head Principal, SJBIT
Dept. of ECE, SJBIT Dept. of ECE,SJBIT Bengaluru
 ACKNOWLEDGEMENT

I would like to express our profound grateful thanks to His Divine Soul Jagadguru Sri
Sri Sri Padmabhushana Dr. Balagangadharanatha Maha Swamiji and His Holiness
Jagadguru Sri Sri Sri Dr. Nirmalanandanatha Maha Swamiji for providing me an
opportunity to pursue my studies in this esteemed institution.

I would also like to express our profound thanks to Reverend Sri Sri Dr. Prakashnath
Swamiji, Managing Director, SJB Institute of Technology, for his continuous support
in providing excellent infrastructure to carry out the graduation in this admired institution.

I express my gratitude to Dr. K V Mahendra Prashanth, Principal, SJB Institute

of Technology, for extending his commendable support and direction, which have helped
me in satisfactory completion of the AICTE Activity.

I extend my sincere thanks to Dr. Chandrappa D N, HOD, Department of Electronics

and Communication Engineering, for providing me an invaluable support throughout
the period of my AICTE Activity.

I express my truthful thanks to Dr. Komala M, AICTE Activity Coordinator,

Department of Electronics and Communication Engineering for his constant support
and guidance in completion of the AICTE Activity.

I wish to express my heartfelt gratitude to our guide Mrs. Chetana R Assistant

professor, for his valuable guidance in completing the AICTE Activity successfully.

Regards,
JAYANTH N
[1JB19EC033]
 ABSTRACT

Digital transactions refer to the exchange of goods, services, or money between parties using electronic
systems such as the internet, mobile devices, and other digital channels. They are fast, efficient, and
secure methods of payment that have become increasingly popular in recent years due to advancements in
technology and the growth of e-commerce.

Digital transactions can take many forms, including online purchases, mobile payments, electronic fund
transfers, and cryptocurrency transactions. They offer several benefits over traditional payment methods
such as cash and checks, including convenience, speed, and reduced costs.

One of the primary advantages of digital transactions is their speed. Unlike traditional payment methods
that require physical exchanges, digital transactions can be completed in real-time, allowing for
immediate access to funds or services. This speed also enables businesses to process payments quickly,
improving cash flow and reducing the risk of fraud and errors.

Digital transactions are also highly secure. With the use of encryption and other security measures, digital
payment systems can protect sensitive information such as credit card numbers and bank account details.
This security helps to prevent fraud and identity theft, giving consumers and businesses greater peace of
mind when making transactions online.

Finally, digital transactions are highly convenient for consumers and businesses alike. They eliminate the
need for physical exchanges, reducing the time and effort required to make payments. They also allow for
greater flexibility in payment methods, with consumers able to choose from a variety of payment options
including credit cards, debit cards, and mobile payment apps.

In conclusion, digital transactions offer many benefits over traditional payment methods, including speed,
security, and convenience. As technology continues to advance, it is likely that digital transactions will
become even more prevalent in the future, revolutionizing the way we pay for goods and services..
 FEATURES AND IMPLEMENTATION PLAN

Activity Name: Facilitating 100% Digitized Money Transactions

Project Category as per AICTE Prepare and Implement Plan to create local job
Activity Points: opportunities

Total Hours of Involvement: 80 Hours

Total activity points earned by this 20 Points

Activity:

Implementation Plan:

• 30 Hours of Practical Survey and Groundwork with the nearby Beneficiaries.

• 30 Hours of analyzing the suitability of our solution in solving the existing
problem and analyzing the data collected.
• 20 Hours of Report Writing.
 CONTENTS
Sl. Title Page No
No
01 Necessity of the AICTE Activity Points 1
02 Objective of Activity 2
03 Introduction 5

04 Activities conducted to school student 11

05 Summarize the important of the activity 24
06 Impact of the Activity 26
07 Summary of the activity 27
08 Photo gallery 28
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CHAPTER 01
NECESSITY OF THE AICTE ACTIVITY POINTS

The objectives of AICTE student activity are to expose students to the real time life challenges, to
provide opportunity to gather data, analyze data, propose solutions, and implement solutions,
provide an opportunity for personal development, to create engineers who are proud volunteers
having a sense of achievement and ready to take up projects having social impact and to create
digital awareness.

Engineering Graduates need to earn activity points before they earn their graduation, or they won’t
be awarded degrees. Students should earn these activity points by working in rural places and
coming up with technological initiatives to beat the civic crisis in the city and state. The All-India
Council for Technical Education has come up with a 15-point program for students to take up to
earn stipulated points. All the VTU affiliated colleges that have been informed about these students
are instructed to follow the AICTE order. These activities can be spread over the years as per
students ‘convenience. By the end of eighth semester, they should have done one of these activities.
This is to ensure that the degree is not only about technical knowledge, but students can also have
some contribution towards society and hence students need to take up societal activities.

Apart from technical knowledge and skills, to be successful as professionals, students should have
excellent soft skills, leadership qualities and team spirit. They should have entrepreneurial
capabilities and societal commitment. To nurture these qualities, VTU has introduced activity points
to be earned by the students during their academic stay at the University covering extracurricular
and cocurricular activities All students must earn a minimum of 100 activity points from various
activity segments listed to qualify for the B. Tech degree. Two credits are given for this on a pass/
fail basis and is mandatory for getting the B. Tech Degree

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CHAPTER 02
OBJECTIVE OF ACTIVITY

The primary objective of digital transactions is to facilitate the exchange of goods, services, or
money between parties using electronic systems such as the internet, mobile devices, and other
digital channels. Digital transactions aim to provide fast, efficient, and secure methods of payment
that offer several benefits over traditional payment methods such as cash and checks.
Some of the key objectives of digital transactions include:
1. Speed: Digital transactions aim to provide fast and efficient payment methods that allow for
immediate access to funds or services.
2. Security: Digital transactions aim to provide secure payment methods that protect sensitive
information such as credit card numbers and bank account details from fraud and identity
theft.
3. Convenience: Digital transactions aim to provide convenient payment methods that eliminate
the need for physical exchanges, reducing the time and effort required to make payments.
4. Cost-effectiveness: Digital transactions aim to provide cost-effective payment methods that
reduce the costs associated with traditional payment methods such as cash and checks.
5. Accessibility: Digital transactions aim to provide accessible payment methods that are
available to anyone with an internet connection or a mobile device, regardless of their location
or financial status.
6. Overall, the objective of digital transactions is to make the payment process more efficient,
secure, and convenient for both consumers and businesses, ultimately leading to a more
streamlined and seamless financial ecosystem.

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CHAPTER 03
INTRODUCTION

Digital India is a flagship programmed of the Government of India with a vision to

transform India into a digitally empowered society and knowledge economy. E- governance
initiatives in India took a broader dimension in the mid-1990s for wider sectoral applications
with emphasis on citizen-centric services. The major ICT initiatives of the Government
included, inter alia, some major projects, such as railway computerization, land record
computerization etc., which focused mainly on the development of information systems.
Later on, many states started ambitious individual e-governance projects aimed at providing
electronic services to citizens. Though these e-governance projects were citizen- centric,
they could make less than the desired impact due to their limited features. The isolated and
less interactive systems revealed major gaps that were thwarting the successful adoption of
e-governance along the entire spectrum of governance. They clearly pointed towards the
need for more comprehensive planning and implementation for the infrastructure required to
be put in place, interoperability issues to be addressed etc., to establish a more connected
government.

Digital India is a Programme to prepare India for a knowledge future. Hon'ble Shri
Narender Modi, Prime Minister of India has laid emphasis on National e- governance plan
and has given its approval for Digital India – A programme to transform India into digital
empowered society and knowledge economy. Digital India is an ambitious programme of
Government of India projected at Rs 1, 13,000 crores. This will be for preparing the India
for the knowledge-based transformation and delivering good governance to citizens by
synchronized and coordinated engagement with both Central Government and State
Government.

This programme has been envisaged by the Department of Electronics and

Information Technology (Deity) and will impact the Ministry of communications & IT,
ministry of rural development, ministry of human resource development, ministry of health
and others. This programme will also benefit all states and union territories. The major ICT
initiatives of the Government included, inter alia, some major projects, such as railway
computerization, land record computerization etc., which focused mainly on the

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development of information systems. Later, many states started ambitious individual e-

governance projects aimed at providing electronic services to citizens. Though these e-
governance projects were citizen-centric, they could make less than the desired impact due to
their limited features. The isolated and less interactive systems revealed major gaps that were
thwarting the successful adoption of e-governance along the entire spectrum of governance.
They clearly pointed towards the need for more comprehensive planning and implementation
for the infrastructure required to be put in place, interoperability issues to be addressed etc., to
establish a more connected government.

The Digital India vision provides the intensified impetus for further momentum and

progress for e-Governance and would promote inclusive growth that covers electronic
services, products, devices, manufacturing, and job opportunities. Digital infrastructure will
focus on providing high speed secure Internet. Governance and services on demand will
stress integrating services across departments and jurisdictions and making services available
in real time for both online and mobile platforms. Digital empowerment of citizens will pay
emphasis on universal digital literacy and availability of digital resources/services in Indian
languages.

The programme will be implemented in phases from 2014 till 2018. The source of
funding for most of the e-Governance projects at present is through budgetary provisions of
respective ministries/departments in the central or state governments. Requirements of funds
for individual project(s) for Digital India will be worked out by respective nodal
ministries/departments but according to government estimate it will cost Rs 113,000 crore.
To implement this the government is planning to strengthen National Informatics Centre
(NIC) by restructuring it to support all central government departments and state
governments. Positions of chief information officers (CIO) would be created in at least 10
key ministries so that e-Governance projects could be designed, developed, and
implemented faster. Apart from this, the Deity would create four senior positions within the
department for managing the programme say additional secretary, Digital India; joint
secretary, infrastructure development; joint secretary, capacity building and digital
enablement; and joint secretary, IT applications in uncovered areas & process re-
engineering.

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Digital India aims to provide the much needed thrust to the nine pillars of growth
areas. Each of these areas is a complex programme and cuts across multiple Ministries and
Departments. The nine pillars of Digital India are given below: Broadband Highways– This
covers three subcomponents, namely Broadband for All – Rural, Broadband for All – Urban
and National Information Infrastructure (NII). A digital transaction converts a traditional
cash-operational society to a cashless one. It can beanything from paying for goods at a
brick-and-mortar store to transferring money onlineto making investment trades.

A cashless society would primarily benefit certain businesses. While some individuals
prefer using debit and credit to cash for convenience, businesses benefit from processing
fees when consumers use their apps and services to send and receive payments. The main
objectives of digital transactions are to reduce the costs and risks of handling cash and to
increase the ease of conducting transactions. The main drawbacks to electronic payments are
concerns over privacy and the possibility of identity theft. Fortunately, there are many
safeguards available to protect your sensitive personal information from falling into the
wrong hands. One of the reasons why our government started vocalizing Cashless Economy
and Digital India was to improve access to financial resources. There are multiple benefits
that digital payments bring to the table.

1. Universal Access to Mobile Connectivity- This initiative focuses on network penetration

and filling the gaps in connectivity in the country.

2. Public Internet Access Programme- The two sub components of Public Internet Access
Programme are Common Services Centres (CSCs) and Post Offices as multi-service centres.

3. e-Governance: Reforming Government through Technology- Government Process

Reengineering using IT to simplify and make the government processes more efficient is
critical for transformation to make the delivery of government services more effective across
various government domains and therefore needs to be implemented by all Ministries/
Departments.

4. e-Kranti – Electronic Delivery of Services- To improve the delivery of public services and
simplify the process of accessing them.

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5. In this regard, several e-governance initiatives have been undertaken by various State
Governments and Central Ministries to usher in an era of e-Government. e-Governance in
India has steadily evolved from the computerization of Government Departments to
initiatives that encapsulate the finer points of Governance, such as citizen centricity, service
orientation and transparency.

6. Information for All- This pillar aims to ensure transparency and availability of reliable
data generated by the line ministries for use, reuse and redistribution for the people of India.

7. Electronics Manufacturing- This pillar focuses on promoting electronics manufacturing in

the country.

8. IT for Jobs- This pillar focuses on providing training to the youth in the skills required for
availing employment opportunities in the IT/ITES sector.

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Chapter 4
Objective of the activity
The primary objective of digital transactions in India is to provide a fast, efficient, and secure
means of exchange of goods, services, or money between parties using electronic systems such as
the internet, mobile devices, and other digital channels. The following are some of the key objectives
of digital transactions in India:

Financial Inclusion: One of the main objectives of digital transactions in India is to increase
financial inclusion, which means providing access to financial services to people who were
previously unbanked or underbanked. With the introduction of digital payment systems such as
mobile wallets and UPI, many people now have access to financial services that were previously out
of reach. This has not only made it easier for people to make transactions but has also helped to
reduce cash transactions, which can be costly and time-consuming.

Efficiency and Convenience: Another important objective of digital transactions in India is to

provide a more efficient and convenient means of payment. Digital payment systems allow for
immediate access to funds or services, eliminating the need for physical exchanges and reducing the
time and effort required to make payments. This is especially important in a country like India,
where many people live in remote areas and may not have access to traditional banking services.

Cost-effectiveness: Digital transactions aim to provide cost-effective payment methods that

reduce the costs associated with traditional payment methods such as cash and checks. Digital
payment systems eliminate the need for physical exchanges, reducing the costs associated with
handling and processing cash and checks. This is especially important for small and medium-sized
enterprises (SMEs), which often have limited resources and may not be able to afford the costs
associated with traditional payment methods.

Transparency and Accountability: Digital transactions aim to provide a more transparent and
accountable means of payment. Digital payment systems leave an electronic trail, making it easier to
track transactions and detect fraudulent activity. This is especially important in a country like India,
where corruption and tax evasion have been major issues.

Push towards a Cashless Economy: Digital transactions aim to promote a cashless economy in
India. With the government's push towards demonetization and the introduction of GST, digital
payment systems have become an integral part of the tax system, making it easier for businesses to
comply with tax regulations and reducing tax evasion. Moreover, digital payment systems have the

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potential to reduce the dependence on cash, which can be costly and difficult to manage.

Overall, the objective of digital transactions in India is to make the payment process more
efficient, secure, and convenient for both consumers and businesses, ultimately leading to a more
streamlined and seamless financial ecosystem. By promoting financial inclusion, reducing costs,
increasing transparency, and promoting a cashless economy, digital transactions have the potential to
transform India's financial landscape and contribute to the country's economic growth.

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Chapter 5
Digital Payment Platforms in India

The most widely used UPI platforms in India are: -

1. Google Pay
2. Phone Pay
3. Paytm
4. Bharath Pay

1. Google pay: -

Google Pay is a digital payment platform and mobile app developed by Google that allows users to
make payments and transfer money using their smartphones. The app was first launched in India in
2017 as Google Tez and was later rebranded as Google Pay in 2018.

Google Pay uses a technology called UPI (Unified Payments Interface) that allows users to link
their bank accounts to the app and make transactions directly from their bank accounts. The app
supports transactions between banks that use UPI, which is a real-time payment system developed
by the National Payments Corporation of India (NPCI).

Google Pay allows users to make a variety of transactions, including person-to-person (P2P)
transfers, bill payments, and online purchases. Users can also pay for purchases in physical stores
by scanning QR codes or using NFC (near field communication) technology.

The app also offers a range of features, including the ability to check account balances, view
transaction history, and receive notifications for transactions. Additionally, Google Pay offers
rewards and cashback for using the app, which can be redeemed for a variety of services and
products.

Google Pay has gained popularity in India due to its user-friendly interface, seamless transaction
process, and security features. The app has also played a significant role in promoting digital
payments and financial inclusion in the country.
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2. Phone Pay: -

PhonePe is a digital payment platform and mobile app developed by PhonePe Private
Limited, which is a subsidiary of Flipkart, an Indian e-commerce company. The app was
launched in India in 2016 and has since become one of the leading digital payment platforms in
the country.

PhonePe uses the UPI (Unified Payments Interface) technology developed by the National
Payments Corporation of India (NPCI) to allow users to link their bank accounts to the app and
make transactions directly from their bank accounts. The app supports transactions between
banks that use UPI, which is a real-time payment system.

PhonePe allows users to make a variety of transactions, including person-to-person (P2P)

transfers, bill payments, and online purchases. Users can also pay for purchases in physical
stores by scanning QR codes or using NFC (near field communication) technology.

The app also offers a range of features, including the ability to check account balances,
view transaction history, and receive notifications for transactions. Additionally, PhonePe offers
rewards and cashback for using the app, which can be redeemed for a variety of services and
products.

PhonePe has gained popularity in India due to its user-friendly interface, seamless
transaction process, and security features. The app has also played a significant role in
promoting digital payments and financial inclusion in the country. In 2020, PhonePe was the
most popular UPI app in India, accounting for around 45% of all UPI transactions.

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3. Paytm: -

Paytm is a digital payment platform and mobile app developed by One97 Communications
Limited, an Indian digital goods and services company. The app was launched in India in 2010
as a platform for mobile recharges and bill payments and has since expanded to become one of
the leading digital payment platforms in the country.

Paytm uses a variety of payment methods, including UPI (Unified Payments Interface),
wallets, and credit/debit cards, to allow users to make transactions directly from their bank
accounts or wallets. The app also offers a variety of services, including mobile recharges, bill
payments, online purchases, and money transfers.

In addition to its core payment services, Paytm has also launched a range of other services,
including Paytm Payments Bank, which is a digital bank that allows users to open savings
accounts and earn interest on their deposits. Paytm also offers a variety of financial products,
including insurance, loans, and credit cards.

The app also offers a range of features, including the ability to check account balances,
view transaction history, and receive notifications for transactions. Additionally, Paytm offers
rewards and cashback for using the app, which can be redeemed for a variety of services and
products.

Paytm has gained popularity in India due to its user-friendly interface, seamless transaction
process, and the wide range of services offered on the app. The app has also played a significant
role in promoting digital payments and financial inclusion in the country. In 2020, Paytm was
the second most popular UPI app in India, accounting for around 16% of all UPI transactions.

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4. BharatPe: -

BharatPe is a digital payment platform and mobile app developed by BharatPe Payments
Private Limited, an Indian fintech company. The app was launched in India in 2018 with the aim
of providing easy and seamless payment solutions to small and medium-sized businesses.

BharatPe uses a QR code-based payment system that allows merchants to accept payments
directly into their bank accounts using their smartphones. The app also allows merchants to send
payment requests to customers and receive payments directly into their bank accounts.

In addition to its core payment services, BharatPe has also launched a range of other
services, including loans and insurance, to support small businesses. The app also offers a range
of features, including the ability to check account balances, view transaction history, and receive
notifications for transactions.

BharatPe has gained popularity in India due to its focus on small businesses and its easy-to-
use payment solutions. The app has also played a significant role in promoting digital payments
and financial inclusion in the country. In 2020, BharatPe was the fourth most popular UPI app in
India, accounting for around 5% of all UPI transactions.

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Photo Gallery

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A digital transaction converts a traditional cash-operational society to a cashless one. It

can be anything from paying for goods at a brick-and-mortar store to transferring money
online to making investment trades. A cashless society would primarily benefit certain
businesses. While some individuals prefer using debit and credit to cash for convenience,
businesses benefit from processing fees when consumers use their apps and services to send
and receive payments. The main objectives of digital transactions are to reduce the costs and
risks of handling cash and to increase the ease of conducting transactions. The main
drawbacks to electronic payments are concerns over privacy and the possibility of identity
theft.
Digitization is the process of transforming information from a physical format to a
digital version. It refers to the act of transforming anything non-digital into a digital
representation that computer systems may utilize to automate operations or workflows.
Gartner defines it as: This digital format’s outputs will be the inputs to a workflow, a
business process, or an enterprise system such as document management systems or
enterprise content management systems. Facilitating 100% Digitized Transactions: This
simply means to achieve the digitization technique to its full extent.
We currently have many methods of digital payment available in India. “Digitization
is the process of changing from analog to digital form, also known as digital enablement.
Said another way, digitization takes an analog process and changes it to a digital form
without any different-in-kind changes to the process itself.” A cashless society would
primarily benefit certain businesses. While some individuals prefer using debit and credit to
cash for convenience, businesses benefit from processing fees when consumers use their
apps and services to send and receive payments. The main objectives of digital transactions
are to reduce the costs and risks of handling cash and to increase the ease of conducting
transactions.
The goal of digitization is to make information more easily accessible, storable,
maintained, and shared. Organizations can only increase their business operations efficiency
and automate their day-to-day activities through digitalization. In a digital enterprise, we
digitize paper documents by scanning and converting them to a digital version, often PDF.
This is frequently followed by the application of sophisticated methods (OCR) to
allow computer systems to grasp the context of the document. This digital format’s outputs
will be the inputs to a workflow, a business process, or an enterprise system such as

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document management systems or enterprise content management systems. Facilitating

100% Digitized Transactions: This simply means to achieve the digitization technique to its
full extent. We currently have many methods of digital payment available in India. Some
methods have been in use for more than a decade, some have become popular recently, and
others are relatively new.
Digital Economy & Digital Payment Division (DEDPD) : The Digital India
programme is a flagship programme of the Government of India with a vision to transform
India into a digitally empowered society and knowledge economy. “Faceless, Paperless,
Cashless” is one of professed role of Digital India. Promotion of digital payments has been
accorded highest priority by the Government of India to bring each segment of our country
under the formal fold of digital payment services. Digitization is the process of transforming
information from a physical format to a digital version. It refers to the act of transforming
anything non-digital into a digital representation that computer systems may utilize to
automate operations or workflows.
Gartner defines it as: “Digitization is the process of changing from analog to digital
form, also known as digital enablement. Said another way, digitization takes an analog
process and changes it to a digital form without any different-in-kind changes to the process
itself.” The goal of digitization is to make information more easily accessible, storable,
maintained, and shared. Organizations can only increase their business operations efficiency
and automate their day-to-day activities through digitalization. Digital Economy & Digital
Payment Division (DEDPD) : The Digital India programme is a flagship programme of the
Government of India with a vision to transform India into a digitally empowered society and
knowledge economy. “Faceless, Paperless, Cashless” is one of professed role of Digital
India. Promotion of digital payments has been accorded highest priority by the Government
of India to bring each segment of our country under the formal fold of digital payment
services. The Vision is to provide facility of seamless digital payment to all citizens of India
in a convenient, easy, affordable, quick and secured manner.
Implementing technology in the financial industry is a necessity for the survival of
businesses as customers seek lower-cost alternatives to traditional financial services. Fintech
companies have led the revolution in transforming the financial sector by digitalizing the
end-client’s transactional eco-system. Digital payments are transactions that take place via
digital or online modes, with no physical exchange of money involved. This means that

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both.parties, the payer, and the payee, use electronic mediums to exchange money.
The Government of India has been undertaking several measures to promote and
encourage digital payments in the country. As part of the ‘Digital India’ campaign, the
government has an aim to create a ‘digitally empowered’ 3 economy that is ‘Faceless,
Paperless, Cashless’. There are various types and methods of digital payments. With more
than half a billion internet subscribers, India is one of the largest and fastest-growing
markets for digital consumers, but adoption is uneven among businesses. As digital
capabilities improve and connectivity becomes omnipresent, technology is poised to change
nearly quickly and radically every sector of India’s economy. That is likely to both create
significant economic value and change the nature of work for tens of millions of Indians.
More than 80 percent of all retail outlets in India—most of them sole proprietors or mom-
and-pop shops—operate in the cash driven informal economy. These businesses do not
generate the financial records needed to apply for bank loans, limiting their growth potential.
Large retailers have their own sets of challenges.
In a digital enterprise, we digitize paper documents by scanning and converting them
to a digital version, often PDF. This is frequently followed by the application of
sophisticated methods (OCR) to allow computer systems to grasp the context of the
document. This digital format’s outputs will be the inputs to a workflow, a business process,
or an enterprise system such as document management systems or enterprise content
management systems. The Vision is to provide facility of seamless digital payment to all
citizens of India in a convenient, easy, affordable, quick and secured manner.
Implementing technology in the financial industry is a necessity for the survival of
businesses as customers seek lower-cost alternatives to traditional financial services. Fintech
companies have led the revolution in transforming the financial sector by digitalizing the
end-client’s transactional eco-system. Digital payments are transactions that take place via
digital or online modes, with no physical exchange of money involved. This means that both
parties, the payer, and the payee, use electronic mediums to exchange money.
The Government of India has been undertaking several measures to promote and
encourage digital payments in the country. As part of the ‘Digital India’ campaign, the
government has an aim to create a ‘digitally empowered’ 3 economy that is ‘Faceless,
Paperless, Cashless’. There are various types and methods of digital payments. With more
than half a billion internet subscribers, India is one of the largest and fastest growing.

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markets for digital consumers, but adoption is uneven among businesses.

As digital capabilities improve and connectivity becomes omnipresent, technology is
poised to change nearly quickly and radically every sector of India’s economy. That is likely
to both create significant economic value and change the nature of work for tens of millions
of Indians. More than 80 percent of all retail outlets in India—most of them sole proprietors
or mom-and-pop shops—operate in the cash driven informal economy. These businesses do
not generate the financial records needed to apply for bank loans, limiting their growth
potential. Large retailers have their own sets of challenges.
Their reliance on manual store operations and high inventory levels is capital heavy. In
many cases, their marketing practices are ineffective, and their prices are static regardless of
inventory or demand. Digital solutions could reshape much of the sector. E-commerce
enables retailers to expand without capital-intensive physical stores. Some do not even
bother with their own website, relying instead on third-party sites such as Amazon, which
offer large, ready pools of shoppers along with logistics, inventory, and payment services,
and customer data analytics.
Ecommerce creates financial records that attest to the creditworthiness of both buyers
and sellers, making it cheaper to borrow. Organizations can only increase their business
operations efficiency and automate their day-to-day activities through digitalization. Digital
marketing can inexpensively engage customers and build brand loyalty. We estimate
ecommerce in India will grow faster than sales at brick-and-mortar outlets, allowing digital
retail to increase its share of trade from 5 percent now to about 15 percent by 2025.
Digital transactions have had a significant impact on India's economy and society in
recent years. Here are some of the keyways in which digital transactions have affected various
sectors in India:
Financial Inclusion: One of the major impacts of digital transactions in India has been the
increase in financial inclusion. With the introduction of digital payment systems such as mobile
wallets and UPI, many people who were previously unbanked or underbanked now have access
to financial services. This has not only made it easier for people to make transactions but has
also helped to reduce cash transactions, which can be costly and time-consuming.
SMEs and Startups: Digital transactions have provided a significant boost to small and
medium-sized enterprises (SMEs) and startups in India. With advent of e-commerce platforms
and digital payment systems, these businesses reach wider audience and transact more

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easily with customers and suppliers. This has helped to boost entrepreneurship in India and has
created more job opportunities.
Tax Compliance: Digital transactions have also had a positive impact on tax compliance
in India. With the introduction of GST (Goods and Services Tax) in 2017, digital transactions
have become a more integral part of the tax system. This has made it easier for businesses to
comply with tax regulations and has helped to reduce tax evasion.
Cashless Economy: Digital transactions have also played a significant role in India's push
towards a cashless economy. The government's demonetization drive in 2016, which saw the
withdrawal of high-value currency notes, led to a surge in digital payments. This has helped to
reduce the dependence on cash and has made transactions more transparent and efficient.
Job Creation: Digital transactions have also created new job opportunities in India. With the
growth of e-commerce and digital payment systems, there is a high demand for professionals
skilled in areas such as digital marketing, data analytics, and cybersecurity. This has helped to
create more jobs in the IT sector and has contributed to the growth of India's economy.

I n summary, digital transactions have had a significant impact on India's economy and
society, providing benefits such as financial inclusion, boosting SMEs and startups, improving tax
compliance, promoting a cashless economy, and creating new job opportunities.

Digital transactions have been crucial in India's push towards a more inclusive and
efficient financial system. With the introduction of digital payment systems and e-commerce
platforms, many people who were previously unbanked or underbanked now have access to
financial services, making transactions more accessible and convenient.

Digital transactions have also provided a significant boost to SMEs and startups, allowing
them to transact more easily with customers and suppliers, and reach a wider audience. This has
contributed to entrepreneurship in India and has created more job opportunities in the IT sector.

The introduction of GST and the push towards a cashless economy have also been
facilitated by digital transactions. They have made it easier for businesses to comply with tax
regulations and have helped to reduce the dependence on cash, making transactions more
transparent and efficient.

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Overall, the importance of digital transactions in India cannot be overstated. They have
helped to modernize the financial system, promote financial inclusion, and drive economic
growth. As India continues to digitize, it is expected that digital transactions will become even
more prevalent, further transforming the country's economy and society.

The advent of digital payment systems has made it easier for people who were
previously unbanked or underbanked to access financial services, reducing cash transactions,
and increasing financial inclusion. It has also created new job opportunities, particularly in the
IT sector, and has contributed to the growth of India's economy.

Moreover, digital transactions have helped to boost entrepreneurship in India, enabling

small and medium-sized enterprises to reach a wider audience and transact more easily with
customers and suppliers. Digital transactions have also played a significant role in India's push
towards a cashless economy, making transactions more transparent and efficient.

Overall, digital transactions have become an integral part of India's financial ecosystem,
and their importance is expected to increase further as the country continues to digitize.

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Chapter 6: -
Conclusion
The AICTE prescribed activity of Facilitating 100% digitized transactions, mainly
focuses on digitizing India to the extreme extent possible and help achieving a complete
cashless system.
Task 1: Conducting a survey on Digitization status among petty shopkeepers and vendors
➢ Task Done: A data survey was conducted among a quite lot of shopkeepers, with the
questionnaire containing queries such as: whether there is an option of digital payments at
the shops, if yes, were there any fraud activities; if not using digital payment modes, what is
the reason, and such similar questions.
➢ Description: The survey questions were asked to each of the shopkeepers we visited.
➢ Outcomes: Conduction of the survey helped in creating an awareness of the digital
payment modes available for the ones who weren’t aware and helped us analyze the percent
of shops using digital payment modes. Task 2: Discussing certain cases
➢ Task Done: Discussing important cases among the shopkeepers, based on the results of
the survey conducted.
➢ Description: The data survey, conducted among the shopkeepers, revealed the people not
using digital payments as well as the ones using them. For the ones that use the digital
payments, the fraud activities discussion was carried out and for the ones not using digital
payment modes, the reason for doing so was discussed.

➢ Outcomes: The friendly discussion made the shopkeepers to open about all the doubt they
had, and many of them were even able to get awareness on the importance of digitizing India
Activity was to conduct a survey regarding the digital transactions which is being used by
the people. A cashless society would primarily benefit certain businesses. While some
individuals prefer using debit and credit to cash for convenience, businesses benefit from processing
fees when consumers use their apps and services to send and receive payments. The main objectives
of digital transactions are to reduce the costs and risks of handling cash and to increase the ease of
conducting transactions. The survey was conducted to as the people about the digital transactions
whether they use the digital transaction and building the awareness among them to use the digital
transactions.

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The survey Questioners is as follows:

1. Do you use cashless transactions? This question is asked to the shop Wenders whether
they use cashless transactions or not if they do not use cashless transaction ask them why
they do not use and aware them to use so. Digital transaction knowledge is given to them
and explains the benefits of online transactions.
2. If yes what motivates you to do so? Asking them why they use the digital payment
methods and in what way does the cashless transactions effects or benefit them.
3. So, what payments do you use? This question is known what the type of payment
methods are do they use which includes cash, UPI, credit card, cheques
4. Do you face any security difficulties? This question is to ask people what the security
measures are did they took for secure online payments and avoiding frauds and if they have
gone to any such activities before how they tackled them.
5. What type of payments methods do your customers prefer? This question is to
understand the protectives of the customers whether they more often use the online
transaction or other payments.
6. How many online transactions do you receive per day? This question is to understand
how many transactions the shop keeper receives in a day the amount is more or less.
7. Is it true that demonetarization enhanced digitalization? This question had to see that how
many people believed that digitalization was triggered by the demonetarization in India in
year 2017 if not we would ask, they then how digitalization did was started
8. What do you personally feel about digital transactions? This question is to know the
personal opinions of the shop keepers about the online transaction and this question also
tells that whether they like the online transactions or not.
9. Do you motivate your customers to use digital payments or not? This question is to know
that the shop keepers spread awareness among the customers if not they encourage them to
do so.
10. How much safer do you feel about the online method of payments? At last question is to
the shop keepers how much safer they feel using online payment/transaction and know
whether they will continue using the online in future or not.

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Chapter7: -
Outcome or Takeaways from the activity:

1. Digitizing goes a long way in the overall development of a country.

2. Making people realize how exactly they can get the best out of using the online payment
modes available.

3. Periodically conducting surveys and awareness campaigns can help in achieving the goal
of reaching 100% digitized transactions.

It is that most the people use this online transaction because to save the time of going
bank because of the online transaction the transferring is very easy and efficient that we can
transfer from one place to even miles far easily in one sitting so the people are happy to use
them this online method of transferring the money is very good which save effort and even
time By this survey we had an opportunity to meet people and talk about the online
transactions that by seeing their nice responses tells that the people are really happy using
online transactions.

Money is really a very important to all of us so everyone is depended on this itself

people work hard to get this money they can’t afford to lose that easily so the security of that
money is also very important thanks to our engineers they have made the best technology
which we can all rely easily and give us safety and that believe that out money will not be
lost At last money transferring online is good according to me it is easy, fast, and safer so
much time savior. Digitization is the process of transforming information from a physical
format to a digital version. It refers to the act of transforming anything non-digital into a
digital representation that computer systems may utilize to automate operations or
workflows Digitization is the process of changing from analog to digital form, also known
as digital enablement. Said another way, digitization takes an analog process and changes it
to a digital form without any different-in-kind changes to the process itself.

The goal of digitization is to make information more easily accessible, storable,

maintained, and shared. Organizations can only increase their business operations efficiency
and automate their day-to-day activities through digitalization. In a digital enterprise, we
digitize paper documents by scanning and converting them to a digital version, often PDF.
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This is frequently followed by the application of sophisticated methods (OCR) to allow

computer systems to grasp the context of the document. This digital format’s outputs will be
the inputs to a workflow, a business process, or an enterprise system such as document
management systems or enterprise content management systems. From this survey I observe
that most of the people have shifted to online transactions or digitized transactions as it is a
safe and faster means for payment. Whereas there are many people who are still dependent
on cash rather than online as they feel it comfortable, and no fear of fraud All were also co-
operative even though many of them were not ready for taking up the survey but later they
were sold on the fact that the survey will help student. At the end all were very happy
taking up the survey. Things Which I have learnt by taking up this survey. The friendly
discussion made the shopkeepers to open about all the doubt they had, and many of them
were even able to get awareness on the importance of digitizing India.

UPI is a payment system that culminates numerous bank accounts into a single
application, allowing the transfer of money easily between any two parties. As compared to
NEFT, RTGS, and IMPS, UPI is far more well-defined and standardized across banks. You
can use UPI to initiate a bank transfer from anywhere in just a few clicks. The benefit of
using UPI is that it allows you to pay directly from your bank account, without the need to
type in the card or bank details. This method has become one of the most popular digital
payment modes in 2020, with October witnessing over 2 billion transactions.

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