Digital Payment Infrastructure — Mains Questions

Critically analyze the role of Unified Payments Interface (UPI) in transforming India's retail payment landscape. Discuss the challenges that need to be addressed for its sustained growth and global expansion.

Examine the potential benefits and risks associated with the introduction of Central Bank Digital Currency (CBDC) in India. How can India leverage CBDC to further its financial inclusion agenda?

The Payment and Settlement Systems Act, 2007, along with RBI guidelines, forms the regulatory backbone of India's digital payment infrastructure. Discuss the key provisions of this framework and critically evaluate its effectiveness in ensuring security, efficiency, and consumer protection amidst rapid technological advancements.