Dig­i­tal trans­ac­tions in In­dia rise to 1.11b in Jan­uary

The Pak Banker - - FRONT PAGE - NEW DELHI -AP

Dig­i­tal trans­ac­tions reached a new peak in Jan­uary in terms of vol­ume af­ter cross­ing the 1 bil­lion mark last month.

They rose 4.73% to 1.11 bil­lion in Jan­uary from 1.06 bil­lion in De­cem­ber, ac­cord­ing to pro­vi­sional data re­leased late on Tues­day by the Re­serve Bank of In­dia (RBI). The over­all value of th­ese trans­ac­tions was also the se­cond high­est in a month in the past year. Trans­ac­tions worth about Rs131.95 tril­lion were car­ried out in Jan­uary through cred- it and debit cards, the uni­fied pay­ments in­ter­face (UPI), un­struc­tured sup­ple­men­tary ser­vice data (USSD), pre­paid pay­ment in­stru­ments (PPIs) and in­ter­net bank­ing. The high­est so far was in March, at Rs149.59 tril­lion.

The im­pact of the gov­ern­ment's de­ci­sion to bear mer­chant dis­count rate (MDR) for a pe­riod of two years, ap­pli­ca­ble on trans­ac­tions made through debit cards, BHIM UPI and Aad­haar-en­abled pay­ments sys­tem (AEPS), which was im­ple­mented from 1 Jan­uary is clear, with a sig­nif­i­cant in­crease in the vol­ume of trans­ac­tions made through th­ese modes dur­ing the month. Trans­ac­tions across UPI reached a new peak in Jan­uary. The trans­ac­tion vol­ume was 151.7 mil­lion, up around 4% from 145.5 mil­lion in the pre­vi­ous month. The value of trans­ac­tions rose around 18% to Rs155.4 bil­lion in Jan­uary from Rs131.4 bil­lion in the pre­vi­ous month. Out of this, Bharat In­ter­face for Money (BHIM) ac­counts for 9.57 mil­lion trans­ac­tions, amount­ing to Rs 3.65 bil­lion.

Trans­ac­tions through UPI re­ceived a ma­jor boost from the gov­ern­ment af­ter Prime Min­is­ter Naren­dra Modi launched the BHIM app on 30 De­cem­ber 2016. Un­til now, there have been more than 22.7 mil­lion down­loads of the app on the An­droid plat­form and around 1.10 mil­lion down­loads on the iOS plat­form.

UPI is a pay­ment sys­tem launched by the Na­tional Pay­ments Cor­po­ra­tion of In­dia (NPCI) which fa­cil­i­tates in­stant fund trans­fer be­tween two bank ac­counts on the mo­bile plat­form with­out hav­ing any de­tails of the ben­e­fi­ciary's bank.

UPI was launched in Au­gust 2016 with 21 banks, and is cur­rently be­ing of­fered by about 71 banks. Us­age of PPIs such as mo­bile wal­lets reached a new peak in terms of both vol­ume and value dur­ing Jan­uary. The vol­ume of PPI trans­ac­tions in Jan­uary was 113.6 mil­lion as com­pared with 99.1 mil­lion in De­cem­ber.

Trans­ac­tions worth Rs38.3 bil­lion were recorded in Jan­uary com­pared with Rs35.1 bil­lion in De­cem­ber. The pro­vi­sional data con­sid­ers trans­ac­tions of PPIs is­sued by eight non-bank is­suers for goods and ser­vices trans­ac­tions only.

Debit and credit card us­age at pointof-sale (PoS) machines was at its se­cond high­est in a month since the gov­ern­ment's de­mon­eti­sa­tion ex­er­cise in Novem­ber 2016. The vol­ume of trans­ac­tions in­creased by around 1.43% in Jan­uary to 267.7 mil­lion trans­ac­tions from 263.9 mil­lion trans­ac­tions in the pre­vi­ous month. The high­est was in De­cem­ber at 311 mil­lion trans­ac­tions. How­ever, the value of trans­ac­tions fell by 3% to Rs512.2 bil­lion in Jan­uary from Rs528.7 bil­lion in the pre­vi­ous month. Card trans­ac­tions of four banks have been con­sid­ered by RBI.

Pay­ments us­ing Na­tional Elec­tronic Funds Trans­fer (NEFT) and Real Time Gross Set­tle­ment (RTGS) in­creased by around 1% and 2.4%, re­spec­tively, in Jan­uary from the pre­ced­ing month.

TOKYO -AP

Work­ers seen in Toy­ota assem­bly line in Ja­panese cap­i­tal.

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