Digital payments surge from 1459.02 crores in FY 2017-18 to 4371.18 crore in FY 2020-21.
It is the policy of the Government to move towards less-cash economy and a digital payment ecosystem. This was stated by Union Minister of State for Finance Shri Pankaj Chaudhary in a written reply to a question in Lok Sabha.
Giving more details as per weekly statistical supplement of the Reserve Bank of India (RBI), the Minister stated that the Notes in Circulation (NIC) were Rs 17,74,187 crore as on 4th November 2016 and Rs 27,80,045 crore as on 29th January, 2021.
On the digital payment ecosystem, the Minister stated that the total volumes of digital payments have also increased from 1459.02 crore in FY 2017-18 to 4371.18 crore in FY 2020-21 due to sustained efforts towards digitalisation.
The Minister further stated that the quantum of bank notes in the economy broadly depends on the requirement for meeting the demand for banknotes due to GDP growth, inflation, and replacement of soiled bank notes and growth in non-cash modes of payment.
In this regard, Dilip Modi, Founder, Spice Money shared an industry perspective on this milestone, he said,”It is great to witness the exponential growth in the total volumes of digital payments from 1459.02 crore in FY 2017-18 to 4371.18 crore in FY 2020-21, as stated by Union Minister of State for Finance in the weekly statistical supplement of RBI. Payments are an integral part of the rural economy and this upward trend indicates the expansion of digital payments to Bharat. We have witnessed Spice Money Adhikaris or banking correspondents leading this expansion by introducing AePS and mATM services in their localities and bringing them onto the map of digital payments.’’
Financial inclusion has also been at the forefront with initiatives like the recently launched e-RUPI that will revolutionise the digital payments system by making the transfer of benefits seamless, cashless and contactless. Payment Infrastructure Development Fund (PIDF) scheme is another initiative that will not only make digital payments services more accessible for the semi-urban and rural population but also support banking correspondents and merchants. The importance of digital payments has never been more clear for a sustained and balanced growth of the economy and this can be achieved by prioritising banking the unbanked.”