Abstract: -

It is a well-known fact that inclusive growth is crucial for achieving sustainable economic development. This was certainly known to planners of Indian development from the beginning as Government of India and Reserve Bank of India have taken various initiatives to promote financial inclusion in India. Recently, Prime Minister, Sh. Narendra Modiji in his message in the National Mission on Financial Inclusion Report has reiterated that 'Sab kaSath Sab kaVikas' is central to development philosophy of the nation. Nationalization of banks, expansion of bank branch network, establishment of cooperative banks and regional rural banks, formation of self-help groups (SHGs) and micro finance institutions were all done toinclude the financially excluded segments of India by bringing their savings into the formal financial system. However, the emphasis of the efforts has always been more on the supply side and as a result reach and coverage of these efforts is still limited. On the other hand, over the past few years, a new payment landscape has emerged in the country that is attempting to provide access to funds transfer, banking, government facilities and other financial services to millions of unbanked in India. The new pre-paid instruments, smart cards, mobile phone applications, point of sale terminals, electronic fund transfer facilities are making inroads among the unbanked populations of the country. This is the outcome of many new technological innovations and initiations of the Government and RBI towards introducing and upgrading safe, efficient and inclusive modes of payments in India. Some of the important developments in the Indian Payment space are formation of National Automated Clearing House and National Payment Corporation in India in 2008, introduction of Immediate Payment Services for mobile payments, Rupay electronic payment card system, Aadhaar enabled payment system, Pradhan Mantra Jan- DhanYojana, payment bank and small banks. For people, the above developments are gateways into the banking system which gives them financial empowerment by providing safe and secure options for receipt of income and spending. Delivery of loans, insurance and other financial services are also made available at affordable costs anytime, anywhere. For the nation, drawing cash into financial system is an engine for growth. It expands the deposit base of the monetary system and provide low cost funds for lending and investment. In the present paper, an attempt has been made to study and record these multifarious changes in the e-payment space in India. An attempt is also made to study the challenges faced in attempting to bring less cash and more inclusive economy in India.

Key Words: - Financial Inclusion, E-payment Services, Reserve Bank of India, Prepaid Instruments, Government of India, National Payment Corporation of India.