RBI Data: An increase in UPI payments, decline in debit card transactions, revealed by RBI data..

According to the monthly data of the Reserve Bank of India (RBI), debit card transactions have declined amid a surge in UPI payments. According to the data, debit card transactions declined by 8 percent from around Rs 43,350 crore in August this year to around Rs 39,920 crore in September. On the other hand, credit card transactions have increased in the country. Credit card transactions grew by about 5 percent to Rs 1.76 lakh crore in September this year, as against Rs 1.68 lakh crore in August.

According to the market, the increase in credit card spending is due to last year's low base and the festive season, as promotional schemes like EMIs have gained momentum during the festive season. According to the latest paper by Reserve Bank economist Pradeep Bhuiyan, digital transactions in India have increased in such a way that the use of cash, which still accounts for 60 percent of consumer spending till March 2024, is declining rapidly.

The share of digital payments is expected to double from 14-19 percent in March 2021 to 40-48 percent in March 2024, with UPI playing a key role. According to the RBI paper, retail digital payments have seen tremendous growth in recent years, which is total digital payments excluding real-time gross settlement.

Launched in 2016, UPI has accounted for the largest share of retail digital payment volumes in the last 5 years. The volume of UPI-based transactions grew 52 percent to Rs 78.97 billion in the first half of this year, compared to Rs 51.9 billion in the same period last year. Similarly, the value of transactions also grew 40 percent from Rs 83.16 lakh crore to Rs 116.63 lakh crore in the first six months of this year.