Page 30 - Banking Finance February 2021

ARTICLE

UPI Bhim, Google Pay) Pre Paid Instruments, Internet Particulars Jan-2016 Jan-2018 Jan-2020
Banking are the effective tools toward a cashless economy.
UPI-Unified Payments 0.00 915.23 12518.62
The Govt. of India and RBI made necessary changes in the
Payment & Settlement Act 2007 & Negotiable Instrument Interface
Act 1881 for smooth and legally complied digital Total Financial Txn 5,406.41 9857.6 26493.23
transactions.
Source -NPCI
The trend of Cashless Transaction in India
According to NPCI, digital data transactions in India is
(In Lakhs) increasing day by day. Within different transaction tools,the

Items Jan-2016 Jan-2018 Jan-2020 E-wallet (PPI) system is going to be more popular. The
Total No. of ATMS 1.96 2.07 2.10 statistics in the report show that from Jan-2018 to Jan-2020,
the UPI transaction increased by 13.50 times in a short span
Total No of POS 13.37 30.62 49.47
of two years. RuPay card usages at POS/e-com became more
Total No of Credit 237.82 362.38 561.20
than double within two years (from2018 to 2020), but the
Card
cash withdrawal at ATM is not increased in such a manner.
Total No.of Debit 6533.63 8466.97 8167.26 It indicates that the E-wallet payment system/usages of POS
Card and online transaction is more preferred by customers than
any other payment methods.
The number of ATMs is almost stable from 2016 to 2020,it
indicates that the popularity of ATM is reducing, but the no. According to a survey, 1%of users preferred cash as a
of POS increased by four times in a short span of four years. payment method, 18% for debit/credit cards, 23% for Net
In the same way, the number of credit cards and debit cards banking, and 59% of users preferred E-wallet as a payment
has significantly increased within four years. The method. And in the future E-wallet payment system will be
comparative analysis saw that the increase in POS is preferable. BI and Govt. both are also promoting the e-
remarkable in the last four years. wallet/POS and online transactions. It will actually reduce
the cash transaction in the economy. The total internet user
No.in million
upto March 2019 is 636.73 million, and subscribers are
Particulars Jan-2016 Jan-2018 Jan-2020 48.48% of the total population. Our 90% population is using
NFS Inter Bank ATM 2,837.01 3,503.44 4311.59 a phone.
Cash Withdrawal
NACH- National 1,392.79 2375.33 3401.77 Benefits:--
Automated Clearing a. Cost Reduction: The cash handling has a high cost for
House printing, circulation, transporting, security,
CTS Cheque Clearing 919.80 1138.06 1035.89 maintenance, etc. In an estimate, the cash handling
(Processed Volume)
IMPS 220.81 1009.84 2579.17
RuPay Card usage at 35.65 667.66 1480.72
(POS/eCom)
AEPS (Inter Bank) Txn 0.36 106.27 437.19
over Micro ATM (Cash
withdrawal/ Cash
Deposit)
BBPS (Bill Payment 0.00 10.6 145.69
passing through
BBPCU)

30 | 2021 | FEBRUARY | BANKING FINANCE