Surabhi With limited movements in the middle of the pandemic, many Indians liked to shop online from home and pay virtually. What is attractive is that while virtual invoices understandably increase the lockout period, the use of money also increases.
Knowledge of RBI shows that the banknotes in circulation amounted to 26,56,476 crore ₹ as of September 25, 2020, almost 23% more than 2160124 ₹ as of September 27, 2019. It is also a build-up of more than thirteen% of ₹ 23,715 million rupees as of March 31 of this year.
“Currency demand has begun to accumulate as a result of the growing uncertainty caused by the Covid-19 pandemic,” the RBI said in its 2019-20 annual report, adding that the price and volume of banknotes in circulation had increased. up to 14. 7% . 6. 6%, respectively, in the last fiscal year.
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However, the notes in the flow decreased to 7540 crore ₹ between September 18 and 25 of this year, and 13,412 crore ₹ since September 11, when it stood at 26,69888 ₹.
Data from the Indian National Payment Corporation (NPCI) show that virtual invoices have returned to pre-Covid-19 grades, as others continue to prefer contactless invoices.
There are also considerations about the spread of the virus through touch, leading others to avoid cash.
Transactions of up to Rs 180 million, worth Rs 3. 29 million Lakh rupees, were positioned on the Unified Payment Interface (UPI) platform in September, to transactions of Rs 161 million, involving 2. 98 million Lakh rupees, in August.
Read also: Digital payment transactions accumulate in bulk to exceed pre-Covid levels
The Immediate Payment Service (IMPS) also reached a record in September, with a total of 2. 79 crore in number and 2. 48 lakh in value. Similarly, bills through Bharat Bill Pay rose to 2. 31 crore in September, or 3920. 83 ₹.
Anecdotal evidence from bankers suggests that even credit and debit card finishing in late September had started to revert to pre-Covid-19 grades in January and February, many invoices being made on e-commerce sites, with almost 0 ticket categories such as travel and hospitality
Knowledge is important, as the demonetization of high-value currencies in November 2016 is expected to depend on money while selling virtual payments. As of November 4, 2016, the banknotes in circulation were 17. 74,187 million rupees. The currency in the flow lately is 50 consistent with cents above the pre-demonet level.
Experts note that cash withdrawals continued amid the pandemic as others seek to keep the bills on hand in case of an emergency.
“Indians are predisposed to have cash, especially in the economic uncertainty of the next six months. But in metropolises, many transactions are made through virtual channels because other people stay at home. The significant aspect is that at a time when global economic activity has declined, the number of transactions has increased,” said Madan Sabnavis, a leading economist at CARE Ratings.
“Cash flow is developing overall at the same rate as nominal GDP growth, and I hope it will continue to grow,” said K Srinivas, managing director and CHIEF executive of BTI Payments. “After a crash in the blocking months, DISbursements at ATMs starting in June. Our network of 6,500 ATMs paid around 3. 5 billion rupees in June. He added that there is still strong demand for liquidity in rural areas.
Rustom Irani, MD and CEO of Cash Business, Hitachi Payment Services, also said more people can simply collect coins due to economic uncertainty. “However, currency outbursts at ATMs are still between 25% and 30% below pre-Covid-19 levels. He said.
Payment players point to untapped potential, even as more and more people have to adopt virtual payment channels.
A recent global survey through Standard Chartered found that 87% of others in India (64% worldwide) now expect their country to be absolutely cashless. This is the proportion of all countries studied, he said, adding that most are waiting for this to take place until 2025.
A recent report through ICICI Securities found that the speed of virtual adoption across channels and contact issues has accelerated and that virtual mode accounts for approximately 87% of retail payments, adding NEFT.
“Contactless invoices (UPIs) are experiencing a remarkable boost, accounting for 24% of total bills,” he said, adding that transactions on the cell banking platform accounted for approximately 20% of all invoices.
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