New Delhi: The National Payments Corporation of India (NPCI) announced on Friday that its domestic card scheme, RuPay, has registered a 100% jump in usage at point of sale (PoS) terminals and other retail outlets within the last two days.
In a surprise decision, Prime Minister Narendra Modi on Tuesday night had announced withdrawal of Rs500 and Rs1,000 notes from circulation in a bid to flush out black money.
The move seems to have had a positive impact on movement towards the cashless economy.
According to the NPCI officials, RuPay usage on PoS and e-commerce sites in the last two days (9 and 10 November) almost doubled to around 8 lakh transactions a day compared with a daily average of 4 lakh transactions earlier.
“It is heartening to witness a good number of first time users at PoS terminals. Using the PoS is even simpler than using on ATM. When there are restrictions on withdrawal of cash in the aftermath of demonetization of notes, usage of payment cards at PoS for all day-to-day purchases is the ideal way to transact,” said A. P. Hota, managing director and chief executive officer, NPCI.
RuPay is enabled on all three channels—ATMs, PoS and e-commerce channels. India has 14 lakh PoS terminals and all the terminals accept all brands of debit and credit cards. The use of RuPay cards at the e-commerce channel has also been growing rapidly. It can be used for booking railway tickets and bus tickets, shopping on the internet or paying bills and taxes.
The usage of Immediate Payment Service (IMPS) and Unified Payments Interface (UPI) has also doubled. IMPS and UPI are 24x7 remittance services.
NPCI officially launched the UPI in April, allowing banks to develop applications in a way that will let customers instantly transfer money to each other. This is widely expected to transform the payments business in India, as customers do not need to exchange bank account details to transfer money.