Digital transformation is not just digital transactions, along with returning cash in the economy, which falls months-to-month after the demonetisation spike, but it is now seen that growth in digital transactions is the same and in some cases, November 2016 What was seen before was slow.
Between November 2016 and May 2017, in seven months, the amount of digital transaction volume increased 1.15 times and the value increased by 1.11 times. In comparison, in the preceding period, the amount of transactions in the transaction increased by 1.14 times and the price increased by 1.12 times (faster).
Even for the 12-month period (November 2015 to May 2016), digital transaction volume increased 1.08 times and 1.19 times faster than the price.
Compared to November 2016, some digital transactions such as mobile banking increased rapid clips during pre-demonetisation days.
Digital Transactions grew in the three months after digitization on November 8, 2016, and in March 2017 all-time high hit. Since then, digital transactions were slow in April and May, until May 2017, 85% of the currency returned to currency circulation.
Numbers indicate that the recession has started in the use of the card on digital mode such as card terminals (POS) and prepaid devices used by the consumer; For example, in December 2016, the amount of debit and debit in January 2017 The use of credit cards doubled to nearly 44 million.
After that, the payment of card payments by March-May was an average of 37 crores in a month. Similarly, in January, 2017, the usage of prepaid devices gradually increased to 30 crores in January before landing in 28 trillion transactions.
Kalpati Mehta, partner and leader of India Financial Services, Deloitte Haskins and Sell said “Before the launch, the digital transaction was higher than that of choice and then due to the lack of cash – due to political reinforcement – people were forced to use digital mode. Once the cash came back, which People like to pay by cash”.
Experts say that this decline in urban areas has been subjected to high transaction fees at the end point, and rural areas lack basic physical digital infrastructure such as swipe machines and uninterrupted internet connectivity.
In April 2016, RBI Deputy Governor SS Mundra had said that “migration to digital transactions” was one of the key determinants to successfully identify or denounce failure.
On Wednesday, the Parliamentary Standing Committee on Finance chaired by Congress Chairman Veerappa Moily will question the Reserve Bank of India Governor Urjit Patel about the profits of the demonstration.To get back the RBI, how much money was deposited back into the system.
However, debit card usage is showing positive growth. Since the use of cards on demonetisation, swipe machines (POS terminal) has increased 1.66 times by May 2017, which was 1.25 times in the year-ago period. Swipe machine is the most omnipresent and basic way of digital payments.
In addition, the number of swipe machines has increased by more than 2.6 million – it is 1.78 times higher than in October 2016. It works for swipe machines in more than 5% stores in India, as it has been estimated that 50 million shops.