Digital transactions surge 80.85% after demonetization

A year after demonetization, the number of digital transactions has seen a tremendous increase -- by 80.85% -- in terms of volume. These digital transactions include National Payments Corporation of India-approved financial transactions such as Unified Payments Interface (UPI), Bharat Interface for Money (BHIM), RuPay, IMPS (immediate payment service), aadhaar enabled payment system (AEPS), among others.

In November 2016, the number of digital transactions stood at 24.13 crore. Demonetization took the total number to 43.64 crore till September 2017, showing an increase of 80.85%. The value of digital transactions increased by 52% to Rs 1,47,624 crore in September 2017 from Rs 96,833 crore in November 2016, according to the data by the ministry of electronics and IT.

The number of transactions through debit cards and credit cards at point-of-sale (PoS) devices jumped 17.07% to 24 crore in September this year from 20.5 crore in November 2016, the data from Reserve Bank of India shows. For the same period, the data in terms of value increased by 35.69% to Rs 47,820 crore in September, 2017 from Rs 35,240 crore in November last year.

According to officials from the ministry of electronics and IT, the ministry is taking proactive measures to promote the growth of digital transactions. "Mobile handset firms have been asked to pre-install BHIM apps in the mobile phones," a senior official from the ministry told DNA Money.

Last year on November 8, the government had announced the scrapping of higher denominations currency (Rs 500 and Rs 1,000) and introduced the new currencies. This has led to a growth in digital transactions.

Digital India is one of the focus areas for the government as it looks to provide the government services through an online medium. The government is in the process of launching next phase of Digital India 2.0 soon as it moves ahead to a target of $1 trillion digital economy by 2022. The minister for electronics and IT Ravi Shankar Prasad has been taking regular meetings on devising ways to promote digital transactions in the country.

'Digital India 2.0' will usher in a new India, which will increase the digital economy by 3.5 times to Rs 70 lakh crore by 2022 from currently Rs 20 lakh crore. This will include Digital payments industry worth Rs 35 lakh crore, software products and services industry at Rs 21 lakh crore, electronics industry at Rs 7 lakh crore and telecom at Rs 7 lakh crore.

Over the last two years, Digital India has made significant progress and it's time to move to the next phase. The pillars of Digital India -- broadband, e-governance, Make in India, e-Kranti, information for all, public internet program and others have to be strengthened and scaled up further as the government aims to make India fully digitally literate.

Digital India programme focuses on providing broadband highways, universal access to mobile connectivity, public internet access, e-governance through technology and electronic delivery of services, among others.

SWIPE IN

• The number of debit and credit cards transactions at point-of-sale (PoS) devices jumped 17.07% to 24 cr
   
• For the same period, the data in terms of value increased by 35.69% to Rs 47,820 crore in Sept, 2017
   
• The ministry is taking proactive measures to promote the growth of digital transactions