NITI Aayog, which is India’s premier think-tank has claimed that the digital payments have rose by 55% in 2016-17 accounting 28% growth during the five-year period ending 2016. This effect was the consequence of Narendra Modi’s campaigns on motivating people to use digital payment mode after demonetization.
Addressing a seminar on ‘Digital Payments Trends, Issues and Challenges’ organised by FICCI in collaboration with NITI Aayog, Rattan Watal, principal advisor to NITI Aayog, said the retail payments segment accounted for as much as 98%-99% of total volumes.
While the share of paper clearing, which was half the volume in 2011-12 steadily dropped to 16% in 2015-16 and further to 11% in 2016-17 with consequently increasing the combined share of electronics clearing and cards.
Watal believes that the growth trends in digital payments are positive and have faith that this will continue to dominate the payments landscape in India. While Watal suggests that the classification of services under the name of service provider, payment destination, user and value would help citizens track growth better.