Significant Surge in Digital Payments; 11,660 Cr Digital Transactions Noted: MoS Finance

In a recent statement, Union Minister of State for Finance, Dr. Bhagwat Kisanrao Karad, highlighted the remarkable increase in digital payments in recent years, attributing the surge to the concerted efforts of the government in collaboration with various stakeholders.

According to the Minister, the total volume of digital payment transactions has witnessed a substantial growth from 2,071 crore in the financial year 2017-18 to an impressive 13,462 crore in the financial year 2022-23, demonstrating a remarkable compound annual growth rate (CAGR) of 45 percent. Notably, the current fiscal year 2023-24 has already seen 11,660 crore digital payment transactions as of December 11, 2023.

Details of the progress made in digital payment transactions over the last six years and the ongoing fiscal year are as follows:

Minister Karad outlined the diverse array of digital payment products catering to both retail and wholesale payments. For wholesale transactions, the Real Time Gross Settlement (RTGS) payment system is in place, while retail payments are facilitated through Unified Payments Interface (UPI), National Electronic Fund Transfer (NEFT), Immediate Payment Service (IMPS), Credit and Debit cards, Prepaid Payment Instruments, National Automated Clearing House (NACH), Aadhaar-enabled Payment Service (AePS) (Fund Transfers), BHIM Aadhaar Pay, and National Electronic Toll Collection (NETC) linked to bank accounts.

Emphasizing the government’s commitment to enhancing user experience and ensuring payment security, Minister Karad outlined several initiatives, including:

1. 1. Conversational Payments in UPI: Enabling users to engage in a conversation with an AI-powered system for initiating and completing transactions in a secure environment.
   2. Offline Payments in UPI: Boosting the speed of small-value transactions on UPI.
   3. Expanding the Scope of e-RUPI Vouchers: Increasing accessibility and reach of digital payments.
   4. Linking RuPay Credit Cards to UPI: Enhancing interoperability and ease of transactions.
   5. Interoperable Card-less Cash Withdrawal (ICCW) at ATMs: Providing convenient cash withdrawal options.

The Minister assured that the government, in collaboration with the Reserve Bank of India (RBI), remains dedicated to furthering the cause of user-friendly digital payments while upholding stringent security measures.