SarathTalks

Digital Payment in India: Is a Necessity?

India has globally created a standard that it can move to secure and aatmanirbhar technology to drive payment.

Pre – covid era was when we implemented or tested but it didn’t see much growth. However, COVID-19 boosted digital payment and transaction volumes have increased drastically.

As per the data from RBI, here is a quick analysis:

  • In 2021, UPI volume increased by 104% and in 2022 it is forecasted to increase by approx. 74%
  • IMPS is expected to grow at a constant rate of 30%
  • NETC is also expected to grow at the same rate as 80-90% of vehicles are already covered
  • The value of transactions is increasing by approx. 100% for IMPS, UPI and NETC.
  • UPI has witnessed greater coverage compared to IMPS and NETC.
  • The success of NETC is also linked to UPI

Key full-form and its understanding

  • UPI: Unified Payments Interface developed by the National Payments Corporation of India (NPCI)
    • Currently, this technology is expanded to Singapore, Malaysia, Nepal, Bhutan and United Arab Emirates
  • IMPS: Immediate Payment Service is built on the existing National Financial Switch network
  • NETC: National Electronic Toll Collection developed by the National Payments Corporation of India (NPCI)
    • It enables FASTag (RFID Tag) to make payments at the toll plazas

Check the quick analysis on the digital payments from 2020 till March 2022

If any suggestions/recommendations or help are required, please feel free to contact me.


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