An unprecedented increase in digital payments

Mumbai, Ta. 30 October 2020, Friday

The country is currently witnessing a drastic change in the Corona era. The cost of people behind restaurants or other luxuries has almost gone down while the cost behind healthcare and precautionary measures has gone up.

Consumers in the country are using digital payments more than ever before after the spread of Corona. Whether it's a grocer or a vegetable seller or a cab driver, everyone is accepting payments through digital mods. Increasing usage is increasing the pressure on online payments technology.

The value of transactions through the Unified Payments Interface (UPI), a platform for digital payments, has risen to more than the amount withdrawn through ATMs since April this year.

Debit card withdrawals from Corona's earlier ATMs, which used to be Rs 2.50 trillion a month, are now down to around Rs 2.50 trillion during Corona's tenure, while the value of transactions through UPIs has now risen from Rs 2.50 trillion to Rs 3 trillion. Yes, according to the Reserve Bank of India.

The value of UPI transactions during this period last year was around Rs 2 trillion per month. The number of UPI transactions, which was 6 crore daily before Corona, has now risen to 70 crore daily for a few days in October. The sudden increase in its volume is often attributed to the recent failure in UPI payments, RBI sources said.