A year since note ban: Digital payments zoom up

A strategy is needed for accelerating growth of Digital Payments in India with a regulatory regime which is conducive to bridging the Digital divide

GN Bureau | November 7, 2017


#GDP   #Demonetisation   #Note Ban   #Payments Bank   #Digital Payment  
Representational image
Representational image

People using their debit or credit card to make payments at shops has become a common sight after demonetisation took place on November 8, 2016.

At some places like the army CSD canteen, cash payment can no longer be done. Only cards are now accepted there.

The switch over from cash to digital payment has not been easy, but it has certainly taken place.

In fact, the volume of various digital transactions (including UPI, USSD including BHIM) increased by about 23 times with 63,80,000 digital transactions for a value of  Rs 2425 crore in March 2017 compared to 2,80,000 digital transactions worth Rs 101 crore  in November 2016.

Aadhaar Enabled Payments have increased from 2.5 crore in November 2016 to over 5 crore in March 2017. Immediate Payment Service (IMPS) transactions have also increased from 3.6 crore to 6.7 crore during the same period.

Interestingly, BHIM App created a new world record by registering 1.9 crore downloads in just four months since its launch in December, 2016.

"We have been working towards a digital India for quite some time. Digi Dhan is one of the initiatives which will become 'niji dhan' (personal wealth) of the poor. It will become the voice of the poor," said prime minister Narendra Modi on April 15, 2017.

Finance minister Arun Jaitley said on November 7, 2017: "Excessive dependence on cash has its own cost. It is not just cost but there is a curse of cash. It has impact on both society and economy."

He said there is a clear change taking place as to how India and Indians are spending money and the change is only in one direction. It will not happen abruptly but the movement towards a less-cash economy is very clear, Business Today quoted him as saying.

The Committee on Digital Payments constituted by the finance ministry under the chairmanship of Ratan P. Watal, principal advisor, NITI Aayog, in its final report recommended a medium term strategy for accelerating growth of Digital Payments in India with a regulatory regime which is conducive to bridging the Digital divide by promoting competition, open access & interoperability in payments.

The report recommends inclusion of financially and socially excluded groups and assimilation of emerging technologies in the market, while safeguarding security of Digital Transactions and providing level playing to all stakeholders and new players who will enter this new transaction space.  It has suggested inter-operability of the payments system between banks and non-banks, up-gradation of the digital payment infrastructure and institutions and a framework to reward innovations and for leading efforts in enabling digital payments.

 

Comments

 

Other News

Omicron: Maharashtra revises travel guidelines

A day after the union health secretary wrote to it that its order on SOPs for air travellers was in divergence with guidelines issued by the MoHFW, GoI in view of the Omicron threat, the Maharashtra government on Thursday revised its guidelines for passengers arriving in the state. Issuing

Omicron: Centre asks Maharashtra to follow uniform guidelines

With the threat of Omicron, the new variant of the coronavirus, looming large, the union health ministry has written to the Maharashtra government to align orders issued by the state with the ministry’s guidelines for uniform implementation. The state government in its order dated Nove

Central Railways runs over 800 Kisan Railway trips

To ensure bigger access to farm produce and provide new markets with quick transportation and subsidy at 50%, the Kisan Rail has been bringing prosperity, joy, and hope to farmers of Maharashtra. On November 28, the Central Railway ran its 800th  trip of Kisan Rail from Sangola to Muzaffarpur.

Omicron forces Mumbai to delay school reopening

The looming threat of the new Covid strain B.1.1.529, known as Omicron, has pushed the Brihanmumbai Municipal Corporation (BMC) to postpone the reopening of schools for classes 1-7 to December 15. Earlier, these classes were scheduled to reopen from December 1. The education department of t

4 Industrial Smart Cities built under the aegis of DMIC: asserts Commerce Ministry

 Source: PTI   As many as 4 greenfield industrial smart cities or nodes are being built under Delhi-Mumbai Industrial Co

Center completed more than 3000 smart city projects valued INR 53, 575 crores: Kaushal Kishore, MoS, MOHUA

 The Minister of State, Ministry of Housing and Urban Affairs(MoHUA), Kaushal Kishore recently shared information in the Rajya Sabha, stating the central government successfully completed 3000 smart cities projects

Visionary Talks: Dr. Naresh Trehan, CMD Medanta Heart Institute with Kailashnath Adhikari



Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter