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.

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