Digital Payment Systems — Mains Questions

Critically analyze the role of Unified Payments Interface (UPI) in fostering financial inclusion and driving the cashless economy in India. Discuss the associated challenges and suggest measures for sustainable growth.

Examine the regulatory framework governing digital payment systems in India, with a special focus on the Payment and Settlement Systems Act, 2007, and RBI's Master Directions. What are the key challenges in balancing innovation with security and consumer protection?

Discuss the role of digital payment systems in achieving the broader objectives of the 'Digital India' initiative. Illustrate with suitable examples and analyze the future prospects, considering emerging technologies like blockchain and CBDC.