Lok Sabha Question No. 2383 (UNSTARRED), answered on 2024-08-06
Subject: E-commerce Payments
Ministry: COMMERCE AND INDUSTRY
Asked by: Thiru Dr. S Jagathratchakan

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 2383. TO BE ANSWERED ON TUESDAY, THE 06 TH  AUGUST, 2024.

## E-COMMERCE PAYMENTS

## 2383.  SHRI S JAGATHRATCHAKAN:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री

- (a) whether it is a fact that the country has recently witnessed the fastest jump in alternative payment share for e-commerce payments in the Asia-Pacific region; and
- (b) if  so,  the  details  thereof,  along  with  the  steps  taken  by  the  Government  to achieve this feat?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री णिणिन प्रसाद ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA)

- (a) & (b): No centralized data is maintained in this regard. However, the details of Digital Payment Transactions for last five financial years are as under :-

| Financial Year   | Digital Payment Transactions   | Digital Payment Transactions   |
|------------------|--------------------------------|--------------------------------|
|                  | Volume (in Crore)              | Value (in Lakh Crore)          |
| 3401.55          |                                | 2019-20 1619.69                |
| 2020-21          | 4370.68                        | 1414.58                        |
| 2021-22          | 7197.68                        | 1744.01                        |
| 2022-23          | 11393.82                       | 2086.85                        |
| 2023-24          | 16443.02                       | 2428.24                        |

Section  10A  of  the  Payment  and  Settlement  Systems  (PSS)  Act,    2007 mandates that no bank or system provider shall impose, whether directly or indirectly, any charge upon a person making or receiving a payment by using the  electronic  modes  of  payment  prescribed  under  Section  269-SU  of  the Income Tax  Act,  1961  (IT  Act).  The  Central  Board  of  Direct  Taxes  notified RuPay debit cards and UPI as prescribed payment modes.

To further boost digital payments and foster financial inclusion, particularly among small merchants and those in the unorganized sector, the Government of India has been incentivizing banks by paying a percentage of the value of RuPay debit card transactions and low-value BHIM-UPI transactions (up to ₹2,000) for personto- merchant (P2M) payments since April 01, 2017. This incentive encourages banks            to  promote the acceptance and usage of RuPay cards and UPI among merchants.

Additionally, since the introduction of UPI in 2016, National Payments Corporation of  India  (NPCI)  (which  operates  UPI  payment  system)  has  added  various enhancements  to  increase  UPI's  scope  and  usability  among  different user segments which include: a) UPI for feature phone users (UPI123Pay), b) UPI Lite for small-value transactions and UPI Lite X for offline transactions c) Linking of RuPay credit cards d) Processing mandates with single block and multiple debits (Autopay) e) UPI for inbound travellers to increase UPI's scope and usability among different user segments.

These initiatives aim to reduce the reliance on cash, enhance the convenience of digital  payments,  and  support  the  transition  towards  a  more  digitally  inclusive economy.

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