Two years after demonetisation of old currency notes of Rs 500 and Rs 1,000 in November 2016, retail digital payments have soared with a total of 16.7 billion cashless transactions in 2017-18 up 127 per cent from 7.33 billion in 2015-16. The total value of such transactions in 2017-18 stood at Rs 299.3 lakh crore up 64.64 per cent from Rs 181.7 lakh crore in 2015-16.
Retail digital transactions include paper clearing or cheques, retail electronic clearing such as NEFT (National Electronic Funds Transfer), IMPS (Immediate Payment Service), card transactions that happen at point of sale (POS) including online transactions, pre-paid instruments (PPIs) and mobile banking.
According to data sourced from the Reserve Bank of India (RBI) monthly bulletins, the volume of mobile banking transactions have grown by 380 per cent to 1.87 billion in 2017-18 from 389.49 million in 2015-16. The value of these transaction too have grown from Rs 4 lakh crore to Rs 14.7lakh crore in 2017-18. The data on mobile banking transactions include Unified Payments Interface (UPI) transactions. UPI is the payment platform of National Payment Corporation of India (NPCI) — promoted by RBI .
Apart from mobile banking, PPIs that include e-wallets like Paytm and pre-paid cards have jumped in volumes in the last two years to 3.45 billion in 2017-18, up 362.43 per cent from 748.02 million in 2015-16. In terms of value, transaction through PPIs stood at Rs 1.4 lakh crore in financial year 2017-18 up 190 per cent since 2015-16.
While cashless transactions have increased since demonetisation, RBI data suggests that currency with the public has shot up to Rs 19.6 lakh crore as on October 25, 2018, compared to Rs 16.3 lakh crore in the same period last year, a rise of close to Rs 3.3 lakh crore. After demonetisation in November-December 2016, currency with the public fell to below the Rs 10 lakh crore mark to Rs 950,000 crore at the start of January 2017.
The RBI data on digital payments suggests a significant growth in usage of debit cards at POS and for online transactions. In 2017-18, there were a total of 3.3 billion debit card transactions for a total value of Rs 4.6 lakh crore up 189 per cent in value from 2015-16. The volume of credit card transactions at POS and online too have increased by 78.85 per cent to 1.4 billion for a total value of Rs 4.58 lakh crore. The RBI data on debit and credit cards do not include cash withdrawals at ATMs.