Debit card transactions at POS hit demonetisation levels in April 2018

Moneycontrol News 

Debit card transactions at point of sale (POS) terminals had climbed to levels similar to demonetisation, according to data released in the Reserve Bank of India's (RBI) monthly bulletin.

The volume of debit card transactions at POS terminals in April was 333.77 million, the RBI said in its bulletin for June. This number is close to the 328.62 million recorded in January 2017, about two months after demonetisation.

Usage of debit cards at card machines was higher than the numbers recorded in February and March 2018, which were 282.01 million and 318.90 million respectively.

But the value of transactions in April was still lower than the value of transactions in January 2017. The value of transactions from debit cards at POS terminals was Rs 45,457 crore in April, lower than the Rs 49,004 crore recorded in January last year.

In April, a few states had reported that ATMs had low cash reserves, creating a cash crunch. This situation could explain the rise in debit card use during the month.

Except January, debit card volumes at POS terminals throughout 2017 ranged between 250 and 300 million, as cash supply resumed normal levels.

Mobile wallet transactions too, saw a slight rise in April from the previous month. 279.29 million mobile wallet transactions were recorded in April, while 268.79 million transactions took place in March, as per data from the central bank.