Challenges and Opportunities of Digital Payment System in Retail Banking with reference to Indian Banking Sector

The objective of the paper is to know the retail banking in Indian scenario and the paradigm shift in its operating activities with the advent of information technology. The demographic change has a significant influence in creating awareness about the various avenues towards payment and settlement system. Technology is a boon to the bankers and customers at large where the bankers can focus on generating revenue to the bank, whereas customers can benefit from ease of carrying out the transactions without any hassle, reducing the dependence on the bankers for withdrawals and time deposits and taking up various agency and utility services with the introduction of Digital Payment System. The retail banking has penetrated the Indian financial market post demonetization with the flagship programme of Jan Ohan Yojana aimed at Financial inclusion- to bring all the unbanked people to the common platform to carry on banking transaction and bring lot of transparency, mobilizing savings and investment, thereby contributing to the capital formation for the smooth functioning of the economic activities in the economy.