Digital transactions up 84%: RBI report
The central bank is concerned as some companies in the power sector are stuck in litigation.Share of electronic transactions as a part of total transactions in the system has climbed to 84.4% in volume terms, up from around 74%, and almost 95.2% of total value is now paid digitally, said the Reserve Bank of India in the Financial Stability Report of 2015-16.
As the banking regulator along with the Finance Ministry pushes forward with its reforms in payments, last year saw a huge jump in transactions done through mobile wallets and prepaid cards.
“The value of transactions through prepaid cards increased to Rs 25,400 crore from Rs 10,500 crore, and for mobile wallets it grew to Rs 20,600 crore from Rs 8,200 crore last year,“ said the RBI in another report titled Report on Trends and Progress of Banking in India.
The figures reveal a more than 140% jump in prepaid card transactions and around 150% jump for mobile wallet transactions.
Prepaid cards would mostly include gift cards, foreign travel cards, corporate cards etc.which can be directly used at point of sales terminals for payments. Further, mobile wallets have become the main form of payments for smartphone users to make transactions across merchant outlets as well as bill payments and recharge, said the RBI.
As smartphone-based payments showed an uptick, credit cards also showed a 16% growth this year from 10% growth in 2014-15.However, debit cards grew at a far slower pace at 19% growth, down from 40% a year ago.
“The spurt in debit card growth last year was attributed to the Pradhan Mantri Jan Dhan Yojana under which every account holder was issued a Rupay debit card. As growth in account opening decelerated, it resulted in a decline in the growth of debit card issuances,“ said the RBI.http://www.gofrnzy.com/index.php/2016/12/30/digital-transactions-up-84-rbi-report/BusinessNews