Debit cards continue to dominate the digital payment space, with 1.21 billion transactions worth ₹3.39 trillion during April, data released by the Reserve Bank of India (RBI) showed.
Out of this, 808.91 million transactions worth ₹2.84 trillion took place via ATMs, with the rest through point of sale (POS) terminals.
There were 14.27 billion debit card-based transactions in 2018-19, up 19.4% from a year earlier. Value of such transactions grew 16.2% on year to ₹39.04 trillion, data showed.
“Debit card is the doorway to digital payments. There has been an increase in debit card payments on a year-on-year basis and this trend will continue," said Mandar Agashe, founder and vice-chairman of payments solution provider Sarvatra Technologies.
Debit cards are mainly used to withdraw cash. According to Agashe, the continued surge in debit card-based transaction is also driven by the large number of Jan Dhan accounts, kisan credit cards, as well as payments made on e-commerce portals for purchases, among others.
Real-time gross settlement (RTGS) transactions grew 7.7% on year in April in terms of volume at 11.48 million and 16.9% on year in terms of value at ₹1,715 trillion. In the case of National Electronic Funds Transfer (NEFT), 203.44 million transactions worth ₹20.54 trillion were clocked in April, increasing from 167.35 million transactions worth ₹16.32 trillion in the same period a year earlier.
RTGS is used for real-time high-value transactions, with minimum value of such transaction at ₹2 lakh, with no ceiling on the upper limit. There is no minimum cap on funds that can be transferred through NEFT, which is an electronic fund transfer system where a transaction is processed in batches. Both these transaction channels are mostly used by businesses.
As many as 378.87 million mobile wallet-based transactions worth ₹15,548 crore were clocked in April as compared with 279.29 million transactions worth ₹11,695 crore a year ago.