India: Digital transactions will increase soon, says Finance Minister

By APD Writer Rishika Chauhan

NEW DELHI, September 19 (APD) -- The Indian finance minister Arun Jaitley said on Monday that cashless transactions will increase again, even though they have declined in recent months.

He made the comments at the launch of “Tez”, Google’s digital payments application (app). “With advances in technology and rapid adoption of the Unified Payments Interface (UPI), people who switched to digital payments out of compulsion after the November 8 demonetization will shift back to cashless transactions because of the convenience they offer,” Jaitley said.

According to Reserve Bank of India’s (RBI) provisional data, the highest number of digital transactions was recorded in December shortly after demonetization. The figure stood at 957.5 million.

Later the number dropped, as RBI brought back cash in the system.

Subsequently, the number of digital transactions declined to 883.42 million in August, marking a 8.4% drop from December.

“In November, December and early this year, a lot of people went in for digitization in terms of mode of payment. It was more out of compulsion rather than finding it a more convenient method to transact but then that compulsion itself created a habit for many. We reached a peak figure and then it marginally slipped and is bound to pick up again,” Jaitley explained.

Google India has introduced Tez as a secure mobile app for digital payments. Tez would work with the enabled banks, so that money stays in users’ bank accounts until they need to use it.

(ASIA PACIFIC DAILY)