Notes ban: Digital payment channels see huge traction

NEW DELHI, Dec 30: Digital payment channels like mobile wallets, USSD and RuPay have seen massive uptake and rise in transactions in the country after demonetisation drive.
According to the government data, the number of USSD transactions saw a whopping 5,135 per cent jump, from 97 such deals a day on November 8 to 5,078 on December 25.
The value of transactions on USSD — mobile short code message used mainly for banking services on feature phone — during the same period grew 4,061 per cent from Rs 1 crore a day to Rs 46 crore on December 25.
“Growth in USSD transactions, albeit on a small base, shows that #IndiaStandsUnited in embracing digital payments… Growth in UPI transactions is also testimony to fact that #IndiaStandsUnited in embracing Digital payments,” tweets from MyGovIndia said.
Prime Minister Narendra Modi is expected to make a big announcement in ‘Digidhan Mela’ today at an event here, it added.
The Government had announced scrapping of old Rs 500 and 1,000 notes on November 8. While this led to liquid cash crunch and serpentine queues at ATMs, the decision also pushed uptake of digital payments in the country.
MyGovIndia said number of UPI transactions — which allows users to transfer funds from one bank account to another using a smartphone — grew 1,342 per cent, from 3,721 such transactions a day on November 8 to 53,648 on December 25.
The value of these transactions during the same time period jumped 647 per cent, from Rs 1.93 crore a day to Rs 14 crore daily.
RuPay (21 lakh on December 25) and mobile wallets (67 lakh) witnessed 446 per cent and 210 per cent rise in number of daily transactions, respectively.
Transactions worth Rs 247 crore were conducted on December 25 using RuPay, while Rs 184 crore worth of transactions were made using seven main mobile wallets, the data said.
“RuPay transactions, through e-commerce and POS, have shown a growth very high growth numbers… People of India have enthusiastically adopted #DigiDhan. Growth figure in 7 main mobile wallets,” the tweets said.
Another tweet by MyGovIndia said there has been a “healthy growth” in Cheque Truncation System (CTS) transactions as well, which already has a significant base.
Cheque-based transactions were up 67 per cent to 51 lakh, with Rs 27,032 crore worth of transactions on December 23, 2016. (PTI)