Lok Sabha Question No. 1055 (UNSTARRED), answered on 2023-02-08
Subject: Digital Transaction
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: Rajeshbhai Naranbhai Chudasama

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA

## UNSTARRED QUESTION NO. 1055

TO BE ANSWERED ON: 08.02.2023

## DIGITAL TRANSACTION

## 1055.  SHRI RAJESHBHAI CHUDASAMA:

Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state:

- (a) the details of digital transactions during the last five years;
- (b) the details of increase in value of these digital transactions during the last five years; and
- (c) the details of the benefits of rising digital transactions?

## ANSWER

## MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI RAJEEV CHANDRASEKHAR)

(a):  Government of India is committed to expand digital transactions in the Indian economy, and  thereby enhance the quality and strength of the financial sector, as well as ease of living for  citizens.    Digital  payment  transactions  have  significantly  increased  as  a  result  of coordinated efforts of the Government as a whole, along with all stake holders concerned, from  2,071  crore  transactions  in  FY  2017-18  to  8,840  crore  transactions  in  FY  2021-22 (Source: RBI, NPCI and banks).

During last  five  years,  various  easy  and  convenient  modes  of  digital  payments,  including Bharat Interface for Money-Unified Payments Interface (BHIM-UPI), Immediate Payment Service (IMPS), and National Electronic Toll Collection (NETC) have registered substantial growth  and  have  transformed  digital  payment  ecosystem  by  increasing  person-to-person (P2P)  as  well  as  person-to-merchant  (P2M)  payments.      BHIM  UPI  has  emerged  as  the preferred  payment  mode  of  the  citizens  and  has  recorded  803.6  crore  digital  payment transactions with the value of ₹ 12.98 lakh crore in January 2023.

The total number of digital payment transactions undertaken during the last five financial years and the current financial year are as under:

| Financial Year (FY)   | Total number of digital transactions (in crore) #   |
|-----------------------|-----------------------------------------------------|
| 2017-18               | 2,071                                               |
| 2018-19               | 3,134                                               |
| 2019-20               | 4,572                                               |
| 2020-21               | 5,554                                               |
| 2021-22               | 8,840                                               |
| 2022-23               | 9192*                                               |

#  Note:  Digital  payment  modes  considered  are  BHIM-UPI,  IMPS,  NACH,  AePS, NETC, debit cards, credit cards, NEFT, RTGS, PPI and others.

Source: RBI, NPCI and banks

(b): The total value of digital payments during the last five financial year and in the current financial year are as under:

| Financial Year (FY)   | Total value of digital transactions (in lakh crore) #   |
|-----------------------|---------------------------------------------------------|
| 2017-18               | 1,962                                                   |
| 2018-19               | 2,482                                                   |
| 2019-20               | 2,953                                                   |
| 2020-21               | 3,000                                                   |
| 2021-22               | 3,021                                                   |
| 2022-23               | 2,050*                                                  |

#  Note:  Digital  payment  modes  considered  are  BHIM-UPI,  IMPS,  NACH,  AePS, NETC, debit cards, credit cards, NEFT, RTGS, PPI and others.

Source: RBI, NPCI and Banks

- (c):  Growth of Digital Payments in India and availability of  various easy and convenient digital payment solutions have facilitated ease of living for citizens, financial inclusion, and growth of business  and  economy.  During  the  Pandemic,  availability  of  contactless  digital payment  solutions  such  as  BHIM-UPI  facilitated  social  distancing  and  continuity  of businesses,  including  small  merchants.  The  benefits  of  using  digital  payments  are  as follows:
-  Instant and convenient mode of payment : Unlike cash, money can be instantaneously transferred to the beneficiary account using digital modes like BHIMUPI  and  IMPS.  Moreover,  using  the  BHIM-UPI  mode,  one  can  effect  a  digital transaction  via  mobile  phone  using    mobile  number    or  easy-to-remember  virtual payment  address  (email-like  address).  BHIM-UPI  has  enabled  access  to  multiple Bank accounts in a single mobile app, facilitating ease of payments.
-  Enhanced financial inclusion :  Digital  payments offer anytime, anywhere access to accounts, thus making it easy for citizens to receive payments in their accounts and to also  make payments using their phone. People who may have been deterred by the time,and travelling cost involved in physically accessing a bank outlet for transactions can now conveniently access the bank account digitally and get various benefits  of  being  part  of  the  formal  banking  system  and  becoming  financially included. Recently launched UPI 123PAYenables feature phone users to make digital transactions through UPI in assisted voice mode, facilitating digital transactions and financial inclusion in rural areas.
-  Increased transparency in government system : Earlier cash payments were subject to  'leakage'  (payments  that  do  not  reach  the  recipient  in  full)  and  'ghost'  (fake) recipients,  particularly  in  the  context  of  social  security  benefits  by  government transfers.  Now,  benefits  are  directly  transferred  to  target  beneficiary  (direct  benefit transfer) account through digital modes of payments.
-  Improved speed and timely delivery: In contrast to a cash payments that travels at the speed of its carrier, digital payments can be virtually instantaneous, regardless of whether the sender and receiver are in the same town, district or country.
-  National  Electronic  Toll  Collection  (NETC)  system: NETC  system  enables  the customer to make electronic payments at NETC-enabled toll plazas on the highway without stopping at the toll, using Radio Frequency Identification technology.
-  Bharat  Bill  Payment  System: Bharat  Bill  Payment  System  (BBPS)  provides  an interoperable  and  easily  accessiblebill  payment  service  to  consumers  via  multiple
- channels like Internet banking,  mobile  banking,  mobile  apps,  BHIM-UPI  etc. Citizens can make easy bill payments anytime, anywhere through BBPS.
-  Enhanced  Credit  Access: Unlike cash  payments,  digital  payments  automatically establish  a  user's  financial  footprint,  thereby  increasing  access  to  formal  financial services,  including  credit.  Banks  and  other  lending  institutions  can  utilise  digital transaction histories to take cashflow-based lending decisions for both retail lending and  lending  to  businesses,  including  small  businesses  who  may  face  difficulty  in getting credit in the absence of verifiable cashflows.
-  Safe  and  secure :  Recipients  of  cash  payments  not  only  often  have  to  travel considerable distances to receive their payments, but are also particularly vulnerable to theft. Digital payments across India are  secure as multiple levels of authentication are required for making transactions.

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