After the introduction of digital India campaign government decided to start digital payment services in Gram panchayat for collecting taxes and government bills. In India there are more than 635000 villages, which are represented by 250000 panchayats. 70 percent of Indian population lives in rural part of the country. If these people start using digital payment system then we can avoid Black money, Corruption, and threat in carrying cash hence it can also contribute to our economic growth. Indian government main aim is to provide all government services on digital platforms.

Objectives to start digital gram panchayat:

• To improve development, governance and public service delivery at panchayat level through information on policy programmes and implementation.
• To facilitate growth of panchayat economy through promotion of panchayat tourism and e-commerce of local produce.
• To put every panchayat on the global digital map.
• To maintain proper records.
• To save time and efforts of the public as well as gram panchayat officers.

Indian government deployed WIFI services to all 250000 Gram panchayats in the country which covers nearby 625000 villages to increase the digital payment practice in rural areas and help them to get rid from poor internet connection. According to reports, there are already 1,42,086 WIFI’s are installed in Gram Panchayat out of them 18,683 WIFI’s are operational. but still in rural areas digital payment user’s total percentage is just 20.26%. After all these benefits provided by government why our people are stepping back when it comes to digital payment services?

There are few major reasons why people still don’t use digital payments:

• Trust: There is still lack of trust towards digital payments such that their accounts may get hacked hence forth people don’t consider digital payment system are safe. People of these categories may don’t have proper knowledge and experience about digital world, lack of exposure and understanding of its operational function.
• Practice: Few peoples are not ready to accept and allow the change. They are addicted to their practice of purchasing with cash. According to their perception the payment system followed by them is safe and simple to use. People believe it is the traditional way of trading.
• Problems faced due to fluctuated internet connection: Now a day’s internet connection gets fluctuated very often. In rural areas internet connection won’t be available at most of the time therefore transaction may get failed. All digital payment applications currently available in the market needs internet connection to operate. In some cases, amount which is been deducted from the customer’s account is not been credited to the beneficiary account the reason behind this is poor internet connection. Therefore, people resist using digital payments.
• Digital Payment Phobia: Digital payment phobia is the fear of not knowing enough about digital payments and many peoples are suffering from these kinds of phobia which keeps them away from the technology as well as facility.
• Illiterate Peoples: In India there are still many people who are illiterate and people doesn’t know read languages such as English and Hindi. People who don’t know to use smart phones and some people are still stuck in the basic hand set due to poverty. Henceforth these peoples are not been connected to any digital payment application because these applications don’t support their handset.
• State of Play: Some people do their trade only by cash and reject the digital payments. Therefore, people step back while it comes to digital payment service.
• Cyber Extortion: As digital payment app service users are growing enormously; this is encouraging online fraudsters to make money. Many peoples are losing millions and billions of moneys every day. They are picking victims out of money, property and inheritance by hacking their personal information, bank details and OTP through servers, fraud calls, links, messages and many more.
• Unbanked: 20% of our Indian population don’t use bank or banking institution in any capacity. Due to lack of trust in banks. But to use the digital payment applications it is mandatory for the person to have bank account.