Digital Payments Transactions reached Rs. 11,660 crore in Financial Year 2023-24

Digital payments have expanded dramatically in recent years as a result of the government’s collaborative efforts with all stakeholders. Dr. Bhagwat Kisanrao Karad, Union Minister of State for Finance, revealed this in a written reply to a question raised in Rajya Sabha on December 19, 2023.

According to the Minister, the overall number of digital payment transactions increased by 45% from Rs. 2,071 crore in FY 2017-18 to Rs. 13,462 crore in FY 2022-23. Till 11.12.2023, digital payments transactions in the current financial year 2023-24 amounted to Rs. 11,660 crore.

The Minister provided the following information on the progress that has occurred in the number of digital payment transactions over the last six years and in the present year:

On the matter of various digital payment products ranging from retail to wholesale payments, the Minister stated that for wholesale payments, there is the Real Time Gross Settlement (RTGS) payment system, and for retail payments, there are Unified Payments Interface (UPI), National Electronic Fund Transfer (NEFT), Immediate Payment Service (IMPS), Credit and Debit cards, Prepaid Payment Instruments, National Automated Clearing House (NACH), Aadhaar enabled Payment Service (AePS) (Fund Transfers), BHIM Aadhaar Pay, and National Electronic Toll Collection (NETC) (linked to bank account).

The Minister noted that the government, in collaboration with the RBI, is always working to make digital payments more user-friendly while also ensuring payment security. Among the efforts made are, inter alia,

(i) Conversational transactions in UPI allow users to begin and complete transactions in a safe and secure environment by conversing with an AI-powered system,

(ii) Offline payments in UPI to boost the speed of small-value transactions on UPI,

(iii) widening the scope and reach of e-RUPI vouchers,

(iv) connecting RuPay Credit Cards to UPI, and

(v) Interoperable Card-less Cash Withdrawal (ICCW) at ATMs.