Today marks one year since the announcement of demonetisation and while the jury may not still be out on the long-term benefits, one thing is clear -- it has sparked a boom in the digital economy. CNBC-TV18's Ritu Singh caught up with experts to find whether this growth can be sustained.
Today marks one year since the announcement of demonetisation and while the jury may not still be out on the long-term benefits, one thing is clear -- it has sparked a boom in the digital economy.
The total value of all electronic transactions, by way of NEFT, IMPS, UPI, Mobile, PoS Terminals, etc, collectively rose in absolute terms very quickly at first, but then at a much slower pace and stand at 99 lakh crores as of October 2017 versus 94 lakh crores one year ago.
In terms of transaction volumes, we saw a very sharp rise immediately post note ban which then settled down to about 860-870 transactions a month, still nearly 200 million higher volumes than a year ago.
Data also shows that transfer through mobile phones have risen in popularity with mobile phone transactions seeing a 61 percent jump -- from 70 million transactions in November last year to nearly 117 million transactions last month.
The government's Unified Payment Interface which started with a measly 0.3 million transactions in a month before demonetisation, saw a phenomenal over 200 percent increase to 68 million transactions as of October.
As far as transactions on PoS Terminals are concerned, we saw a 10 percent rise compared to the previous year.
So it cannot be disputed that demonetisation did in fact lead to a rise in digital payments. CNBC-TV18's Ritu Singh caught up with Krishnan Dharmarajan CEO, CDFI, Manoj Adlakha CEO American Express India, Renu Satti CEO, Paytm Payments Bk, Bipin Preet Singh Founder & CEO MobiKwik, Rohan Mahadevan Senior Vice President PayPal and Anupam Pahuja MD-India PayPal to find whether this growth can be sustained.
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