Check Payments vs Digital Payments | Check Payments on Decline Says RBI Data: All You Need to Know | When did you sign the last check? Know how the payment declined from check after demonetisation and how digital payments increased. » India News
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Check Payments vs Digital Payments | Check Payments on Decline Says RBI Data: All You Need to Know | When did you sign the last check? Know how the payment declined from check after demonetisation and how digital payments increased.

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After demonetisation, the methods of making and receiving payments have changed in India. What used to be an important document for check transactions at one time was no longer useful. This thing has come out from the data of RBI itself. The clearing through paper clearing or check has come down to just 2.9% of the volume and just 20.08% of the value in FY 2019-20.

In FY16, the Reserve Bank aggressively pushed to promote digital payments and when demonetisation took place, Chex’s share in the volume rose to 15.81%. The check accounted for 46.08% of the total retail payments. Efforts made for digitization have been successful to a great extent in reducing paper clearing.

Not only the volume, the value also decreased

In the last five years, not only the volume of check payments but also the value has decreased. Checks accounted for 15.81 per cent of the total payments in the financial year 2015-16, which decreased to only 2.95 per cent in 2019-20. Similarly, in 2015-16, 46.08% of the total transaction amount was paid by check, while now the value has also come down to 20%.

Digital Payments Up 55.1% Every Year

Digital payments also grew by 55.1% annually between FY 2015-16 and 2019-20. 593.61 crore transactions were digitalized in FY 2015-16, which increased to 3,434.56 crore in 2019-20. If you look at the amount, this increase has also almost doubled from Rs 920.38 lakh crore to Rs 1,623.05 lakh crore. That is, every 15.2% increase.

Digital payment increased manifold in lockdown

Digital payments have increased by leaps and bounds in view of the ban on epidemics and lockdowns, while the status of the epidemic may result in a drop in value. By the way, the government has also focused on increasing digital payments through NEFT, RTGS and ECS payments.

Along with UPI-based payments, app-based payments have also applied their full strength and have also grown rapidly in view of the increase in the payment system. The shift from cash to digital payments in non-bank companies’ entry and customer behavior is also supporting this. How the customer behavior has changed, it is also seen that the usage of debit card was 20% in FY 2015-16, which has now crossed 45%.

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