Winning Bizness Desk
Mumbai. There are very few such opportunities when the village goes ahead of the cities and such is the case when villages have overtaken cities in paying through the Unified Payment Interface (UPI). According to the SBI report, in terms of value in FY 2023, the share of villages is 25 percent while the share of cities is 20 percent. The report said that transactions through UPI have now reached a new height. According to the SBI report, digital payments as compared to GDP in FY 2016 was 668 percent which has now increased to 767 percent. Excluding RTGS, retail digital payments have increased from 129 per cent to 242 per cent. In 2016, only Rs 6,947 crore were paid through UPI which has now crossed Rs 139 lakh crore. In terms of volume, it has increased from 1.8 crore to 8,375 crore during the same period.
8.9 billion transactions in April
According to the report, a total of 8.9 billion transactions worth Rs 14.1 lakh crore were transacted through UPI in April. Its average was Rs 1,600. In the top 15 states of the country, UPI's share in terms of value and volume is 90 percent. In top 100 districts this share is 45 percent. A one rupee value increase in UPI reduces debit card transactions by 18 paise. According to the report, the value of UPI in retail has increased to 83 percent while ATM withdrawals have decreased to 17 percent. The total transaction from ATMs (only debit cards) has been Rs 30-35 lakh crore. In 2017, ATM transactions were 15.4 percent of nominal GDP, which has now come down to 12.1 percent.
Withdrawal of 2k notes will not affect the economy
The report said that withdrawal of 2000 notes will not affect the economy. However, this will help the banks with liquidity. In the report, it is expected that around 3 lakh crore rupees will be returned, while the currency chest of the banks is already more than 60 thousand crore rupees. A SBI report says that earlier people used to visit ATMs an average of 16 times a year. Now this number has been reduced to 8 times. Cash withdrawals from ATMs are now reduced due to continuous digital payments. Currently there are about 2.5 lakh ATMs in the country.
