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RBI: Digital transactions' value rose by 2.4% in June

Livemint:  July 06, 2017

New Delhi: Digital transactions rose in June in terms of value from the previous month, according to the Reserve Bank of India (RBI).

Total digital transactions rose 2.36% to Rs113.73 trillion, from Rs111.11 trillion in May, according to the provisional data released on Wednesday by RBI.

The number of digital transactions, however, declined marginally to 831.7 million in June from 858.5 million in May. The highest volume was recorded in December at 957.5 million.

Digital transactions include those conducted through credit and debit cards, unified payments interface (UPI), unstructured supplementary service data (USSD), prepaid payment instruments (PPIs) and internet banking.

Debit and credit card usage at point-of-sale (PoS) machines fell by around 4% in June to 224.1 million transactions from 233.4 million in the previous month.

Transactions using UPI rose to a record 10.2 million in June from 9.2 million in the previous month. The value of such transactions rose around 11% to Rs30.7 billion in June from Rs27.7 billion in the previous month. Since December, UPI transaction volume has risen more than five-fold, according to the RBI data.

Transactions via USSD also grew in June, in terms of volume, by around 3.26% from the previous month.

“Transactions on UPI are growing exponentially due to increased acceptance member banks, merchants and consumers….. The transaction volume has risen to 10 million in just 11 months from less than one million in August 2016,” said National Payments Corp. of India (NPCI) in a statement on Monday.

Usage of PPIs such as mobile wallets fell both in terms of volume and value in June after reaching a new peak in the previous month. The volume of PPI transactions declined by 12.25% to 80.1 million in June from 91.3 million in May. The value of transactions also fell by 10% to Rs22.8 billion in June from Rs25.3 billion in May. The provisional data considers transactions of PPI issued by eight non-bank issuers for goods and services transactions only.

Payments using National Electronic Funds Transfer (NEFT) and Real Time Gross Settlement (RTGS) declined by around 2.23% and 5.8%, respectively, in June from the preceding month.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.