The Electronic Payment channel viz Unified Payments Interface (UPI), has shown the lowest in the value of digital transactions which again saw another decline during February 2017. The NPCI managed payment system was reported to be of Rs. 1,728 crore transactions value in February which was Rs. 1,659 crore in January this year.
The notable thing here is that the volumes in the UPI transactions came down to 3.8 million in February 2017 from 4 million in the previous month. The volumes for the UPI stream in December were about 2 million, as per RBI data. The jump is in UPI transaction figures is attributed to the entry of big banks. Also, in the other digital banking channels, some change is expected in volumes and values, which had shown some upward trend, during cash crunch period after the demonetization. The overall statistics reveal the following trend:
- The other electronic mode channels like Mobile Banking and Credit and Debit cards usage at PoS (Point of Sales) also showed a downfall for the second straight month in February this year.
- The volume of mobile banking activity in terms of its value, came down from Rs. 1.37 lac crores in December to RS. 1.21 lac crores in January and further down to Rs. 0.90 lac crores in February this year, as per RBI data.
- Equally the Debit and Credit card transactions in terms of its value at PoS showed a decline during the above period of review – ie., Rs. 52,000 crore in December 2016, Rs. 48,000 crore in January and Rs. 35,200 crore in Feb 2017.
Experts feel that annual growth trend analysis is more pertinent than week over week and month over month comparison, since the overall growth in digital payment/electronic payments are geared up to grow by 40-50 per cent annually.