Soon Prepaid Mobile Connection Holders Can Recharge Through Bharat Bill ndtv.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from ndtv.com Daily Mail and Mail on Sunday newspapers.
In today s ETtech Morning Dispatch newsletter, e-commerce firms get a pandemic boost from Mumbai and Delhi; Digital payments see a sharp decline; and Infosys begins internal probe after insider trading allegations.
From UPI to cash, almost all payment modes see decline in May
SECTIONS
Share
Synopsis
The National Payments Corporation of India’s UPI, IMPS and FASTag, and the Reserve Bank of India’s NEFT and RTGS, which is used by businesses, saw sharp declines in both the volume and value of payments processed
ETtech
Illustration: Rahul Awasthi
Nearly all modes of payment, digital and cash, saw a monthly decline in May owing to subdued economic activity in India amid the second wave of Covid, the latest data from the RBI showed.
The National Payments Corporation of India’s UPI, IMPS and FASTag, and the Reserve Bank of India’s NEFT and RTGS, which is used by businesses, saw sharp declines in both the volume and value of payments processed. Withdrawals from ATMs – a proxy for cash spends – also saw a drop.
More Indians are now tapping mobiles to pay than cards
The subdued spends on credit cards in FY21 also reflected in banks’ credit growth.
Synopsis
The number of card-based transactions through credit and debit modes decreased by 19 per cent and 20.6 per cent, respectively in FY21. The value of these card-based transactions, too, fell by 13.7 per cent and 5.9 per cent, respectively to Rs 6.3 lakh crore and Rs 6.6 lakh crore.
Mumbai: Indians, facing restrictions due to the Covid-19 pandemic over the course of the last fiscal, used more of mobile-based digital payments such as Unified Payments Interface (UPI) and Bharat Bill Payment System (BBPS) and less of their credit and debit cards, according to data released by the Reserve Bank of India in its FY21 annual report on Thursday.
The pandemic has accelerated the adoption of digital payments in India, especially retail digital payments. In the past year, retail digital payments have seen huge growth as more people gravitated towards digital modes of transaction owing to fear of contracting the virus and convenience. Data from the Reserve Bank of India (RBI) suggests, a slowdown in wholesale transaction value, but volume growth withstood the pandemic. Transactions through National Electronic Funds Transfer (NEFT), National Electronic Toll Collection (NETC), and the Bharat Bill Payment System (BBPS) registered acceleration over the previous year. Other retail payment platforms such as Unified Payments Interface (UPI), Immediate Payment Service (IMPS), and National Automated Clearing House (NACH) saw a near doubling of both transaction volume from 12.5 billion to 22.3 billion, and value from Rs 21.3 trillion to Rs 41 trillion between FY2020 and 2021.