The value of transactions at point-of-sale (PoS) machines during the first 26 days of March was lower than that for entire November, when the government had withdrawn high-value currency notes. Most other modes of retail digital payments also saw a drop over February. The value of transactions made through the Immediate Payment System (IMPS) fell 4.9% to R45,850 crore, while those through the USSD channel declined 18.8% to R29 crore. Payments through prepaid instruments, or PPIs, fell 4.5% to R1,790 crore. Data for PPI transactions is sourced from eight non-bank issuers for goods and services transactions only.
Changes on the cards
The two modes which bucked the trend were Unified Payments Interface (UPI) and mobile banking, which grew 3.6% to R1,970 crore and 10.5% to R1,19,360 crore, respectively. Data for mobile banking transactions is sourced from five banks. Debit and credit card transactions at PoS terminals in March added up to R34,389.7 crore, while the corresponding figure for November was R35,235.97 crore, representative data sourced from four banks and released by the Reserve Bank of India showed. The value in March is 12.2% lower than that for entire February.
Consumers adopted digital modes of payment after note ban on November 8. However, if one were to go by recent data releases, the phenomenon may be reversing . The value of card transactions had peaked in December at R52,223.84 crore before slipping to R48,124.11 crore in January and R39,147.02 crore in February. The decline has been in line with the RBI’s decision to ease limits on cash withdrawals, starting January, and their complete removal by March 13.