Financial payments and transactions, especially those done through mobile banking apps and mobile wallets, are witnessing fast growth. According to the monthly data released by the Reserve Bank of India (RBI), the number of transactions on mobile banking apps grew almost 3.5 times at 447 million in September, compared to 133 million in the year-ago period.
The value of such transactions also grew more than 2.4 times at ₹2.07 lakh crore, compared to ₹84,700 crore during the same month last year.
Prepaid Payment Instruments (PPIs), which include mobile wallets, paper vouchers and PPI cards, also grew moderately at more than 1.6 times in both volume and value terms at 357 million and ₹17,700 crore, respectively, in September, the RBI data added. Mobile banking transactions have seen a surge despitecash coming back into the system.
However, the major boost has come from the Unified Payments Interface (UPI), according to experts. HDFC Bank and ICICI Bank are among the top private banks that have relaunched their mobile apps.
While mobile-based transactions are growing, use of credit and debit cards are declining month-on-month. The volume of card (both credit and debit) usage declined to 1,300 million in September, compared to 1,307 million in AugustThe value of these transactions also declined in September at ₹3.6 lakh crore from ₹3.7 lakh crore in July.