Lok Sabha Question No. 192 (STARRED), answered on 2016-05-06
Subject: Digitalisation in the Banks
Ministry: FINANCE
Asked by: GOPALAKRISHNAN CHINNARAJ

## GOVERNMENT  OF  INDIA MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES

## LOK  SABHA STARRED QUESTION  No.  * 192

TO BE ANSWERED ON  6 th  MAY 2016  (FRIDAY)/VAISAKHA 16, 1938 (SAKA)

## Digitalisation  in  the  Banks

## *192 .  DR. C. GOPALAKRISHNAN :

Will the Minister of FINANCE be pleased to state:

- (a) the  status of digitalisation in the Banking Sector;
- (b) whether the  Government  has taken  steps to  ensure  cent  percent  digital transactions in Banking Sector, if so, the details thereof;
- (c) whether consumers are not so enthusiastic to avail these facilities on account of charges levied by banks on such transactions; and
- (d) if so, the steps taken  to promote consumer friendly banking in the country?

## Answer THE  FINANCE  MINISTER (SHRI  ARUN  JAITLEY)

(a) to (d)  A  Statement  is  laid  on  the  Table  of  the  House.

- ******

## 12 th  POSITION

Statement referred   to   in   reply   to   parts (a) to (d)   of   Lok   Sabha   Starred Question No.  *192 (12 th Position) for 6 th   May,  2016 by Dr. C. Gopalakrishnan, MP,  regarding  'Digitalisation in  the  Banks'

- a) Scheduled Commercial Banks (SCBs) have adopted Core Banking Solution (CBS) platform and this  facility  is  being  used  by  SCBs  and  their  customers.   All  new  bank  branches  are required to be opened in CBS platform only.  This has enabled customers to go to any bank branch and get the desired services, by enabling  interoperability of ATMs and Point of Sale (PoS) terminals across banks.   Reserve   Bank   of   India (RBI) is operating and managing centralized  payment  systems  such  as  Real  Time  Gross  Settlement  (RTGS),  National Electronic fund Transfer System (NEFT) and National Electronic Clearing Service (NECS). RBI has also authorized National Payment Corporation of India (NPCI) to operate Immediate Payment System (IMPS), National Automated Clearing House (NACH), Aadhaar Enabled Payment  System  (AEPS),  Aadhaar  Payments  Bridge  (ABPS),  United  Payment  Interface (UPI) and also to launch card scheme ( RuPay).   RBI has given approval to 145 banks for launching mobile banking. RBI  has  informed that presently there are 172 direct members in NEFT and 188 in RTGS system.   The status of payments systems in the country for last three years is given in Annexure .
- b) to (d)  The   data in  Annexure  shows that while total  paper based clearing has gone down in the last three years and total   retail electronic payments have grown both in   volume as well  as  in  value. In  order  to safeguard  the  interest  of  the  customers,  RBI  has  been mandating the maximum amount which can be charged from the customers. For example, for transactions beyond the mandated limit of minimum number of free ATM transactions per month, banks can charge up to a maximum of Rs. 20 plus applicable service tax per ATM transaction.   However,  banks  are  free  to  offer  more  number  of  free  transactions  to  their customers and/or levy charges below the prescribed upper limit of Rs. 20 plus applicable service tax per ATM transaction.

******

Lok Sabha Starred Q. No. 192 for 06.05.2016 regarding 'Digitalisation in the  Banks'.   ANNEXURE

| Item                                         | Volume (million) (Number of transactions   | Volume (million) (Number of transactions   | Volume (million) (Number of transactions   | Value ( ` billion) (Rupees)   | Value ( ` billion) (Rupees)   | Value ( ` billion) (Rupees)   |
|----------------------------------------------|--------------------------------------------|--------------------------------------------|--------------------------------------------|-------------------------------|-------------------------------|-------------------------------|
|                                              | 2012-13                                    | 2013-14                                    | 2014-15                                    | 2012-13                       | 2013-14                       | 2014-15                       |
| 1                                            | 2                                          | 3                                          | 4                                          | 5                             | 6                             | 7                             |
| 1. RTGS                                      | 68.5                                       | 81.1                                       | 92.8                                       | 676841.0                      | 734252.4                      | 754032.4                      |
| Retail Payments                              |                                            |                                            |                                            |                               |                               |                               |
| Total Paper Clearing (2+3+4)                 | 1313.7                                     | 1257.3                                     | 1195.8                                     | 100181.8                      | 93316.0                       | 85439.3                       |
| 2. CTS (Cheque Truncation System)            | 275.0                                      | 591.4                                      | 964.9                                      | 21779.5                       | 44691.4                       | 66769.9                       |
| 3. MICR Clearing                             | 823.3                                      | 440.1                                      | 22.4                                       | 57504.0                       | 30942.8                       | 1850.4                        |
| 4. Non- MICR Clearing                        | 215.3                                      | 225.9                                      | 208.5                                      | 20898.3                       | 17681.8                       | 16819.0                       |
| Total Retail Electronic Clearing (5+6+7+8+9) | 694.1                                      | 1108.3                                     | 1687.4                                     | 31881.1                       | 47856.3                       | 65365.5                       |
| 5. ECS DR                                    | 176.5                                      | 192.9                                      | 226.0                                      | 1083.1                        | 1268.0                        | 1739.8                        |
| 6. ECS CR                                    | 122.2                                      | 152.5                                      | 115.3                                      | 1771.3                        | 2492.2                        | 2019.1                        |
| 7. NEFT                                      | 394.1                                      | 661.0                                      | 927.6                                      | 29022.4                       | 43785.5                       | 59803.8                       |
| 8. Immediate Payment Service (IMPS)          | 1.2                                        | 15.4                                       | 78.4                                       | 4.3                           | 95.8                          | 581.9                         |
| 9. National Automated Clearing House (NACH)  | -                                          | 86.5                                       | 340.2                                      | -                             | 214.8                         | 1220.9                        |
| Total Card Payments (10+11+12)               | 932.6                                      | 1261.8                                     | 1737.7                                     | 2052.1                        | 2575.4                        | 3324.5                        |
| 10. Credit Cards                             | 396.6                                      | 509.1                                      | 615.1                                      | 1229.5                        | 1539.9                        | 1899.2                        |
| 11. Debit Cards                              | 469.1                                      | 619.1                                      | 808.1                                      | 743.4                         | 954.5                         | 1213.4                        |
| 12. Prepaid Payment Instruments (PPIs)       | 66.9                                       | 133.6                                      | 314.5                                      | 79.2                          | 81.0                          | 211.9                         |

Source: RBI