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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