Navigating the Digital Revolution: The Transformative Effects of Digitalization on India’s Banking Sector Within BRICS

Abstract

This research aims to assess the impact of digitalization on the banking sectors of the BRICS countries, and in particular, the Indian banking sector. Based on the research findings, the contribution of some of the key initiatives, such as the UPI and the Digital India program, in the Indian banking industry to digital transformation has been significant. However, challenges like cybercrime, low digital literacy, and restricted internet accessibility in certain rural areas remain. The thesis proposes ways of strengthening regulation, increasing access to the Internet in rural areas, and developing the digital literacy campaign. It also demonstrates how legal frameworks applied with the purpose of modernization in the digital environment affect the process of digitization in the BRICS member countries and India. It can be concluded that India has market potential in the global digital economy, and consideration of these challenges is crucial for digital banking. The research underlines the critical role of continuous regulatory updates and effective cybersecurity measures to maintain consumers' loyalties and drive further growth in India's digital economy. In addition, several recommendations are also discussed for the way forward.