Only 7% rise in transactions through cards post Demonetistion

Transactions through IMPS or Immediate Payment Service, which is an electronic fund transfer service, almost doubled to 2.2 million from 1.2 million during the Modi government's demonetisation bid, according to the data shared by government officials.

By: PTI | New Delhi | Updated: July 16, 2017 1:47 pm
demonetisation news, india news, indian express news, latest news The Modi government had on November 8, 2016 announced the demonetisation of Rs 500 and Rs 1,000 bank notes in a bid to curtail black money. (File/Photo)

Transactions through debit and credit cards rose by merely seven per cent post demonetisation, as against a surge of over 23 per cent in overall digital transactions, top government officials told a parliamentary panel. Officials from various ministries gave a presentation to the Parliamentary Standing Committee on Finance on ‘Demonetisation and Transformation towards Digital Economy’. The digital transactions in all modes increased by 23 per cent to 27.5 million in May 2017 from 22.4 million in November 2016, according to the presentation, a copy of which is with PTI. The highest jump was witnessed in transactions through UPI, from one million per day in November 2016 to 30 million in May 2017.

UPI or Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application for seamless fund routing and merchant payments into one hood.

Transactions through IMPS or Immediate Payment Service, which is an electronic fund transfer service, almost doubled to 2.2 million from 1.2 million during the period under purview, according to the data shared by government officials.

The least rise in digital transactions was witnessed in the case of plastic cards, as the rise was only seven per cent — from 6.8 million in November 2016 to 7.3 million in May this year.

The Narendra Modi government had on November 8, 2016 announced the demonetisation of Rs 500 and Rs 1,000 bank notes in a bid to curtail black money.

Following the move, the government pushed for digital transactions.

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  1. L
    Logic Induction
    Jul 17, 2017 at 7:15 am
    People can see through the devices of the failed Shah, Modi, Patel, Hans tactics in Delhi.
    Reply
    1. G
      Gopalarathnam Krishna Prasad
      Jul 17, 2017 at 3:50 am
      The main objective of DM was to discourage cash transactions and to encourage card/ cheque transcation so that the transcation effects ST/Execsice duty , VAT and other are paid and government gets its due taxes in each transction and tax collection raise and tac evation is reduced.. But in a corrupt scociety like ours incliding the commentator ... all this will fail Both citizens and rulers .. MPS/ MLAs etc are equlaay corrupted which makes Bharath one of the very corrupt countries in the world ... Thstha Praja Ththa Raja ... So tax collecton cannot improve very much, so do tax vollection for government and fnds for inftastucture rojects ... tax collected may just meet the requirement to pay ries to government employees so the Gov epl .. take brobe from citizens and keep gov going...
      Reply
      1. I
        Ivan
        Jul 17, 2017 at 7:58 pm
        Have you considered that people just find cash more convenient? I don't mind paying at the supermarket electronically. But suppose that that terminals are not working, or when working take a long time to update, or the additional hassle of standing behind people using credit cards. Why should we avoid using card if it is easy to use. Most people buying retail are not interested in avoiding tax, since the shopkeeper is not going to pass any tax saved to us. They still charge us the MRP. There is savings no advantage to the consumer by using cash. It just happens to be more convenient.
        Reply
        1. V
          Vinay
          Jul 17, 2017 at 10:55 pm
          Only those who favour the rich increase indirect Taxes like GST and reduces Direct Taxes like Income Tax. A beggar will also buy a bar of soap.
          Reply