Digital transactions more than doubled in the last five years, says government

The advancement of technology with the rise in digital payment apps have led to an increase in online transactions across the country. Digital transactions have more than doubled in volume over the last five years from Rs 1,393 lakh crore in 2016-17 to Rs 3,000 lakh crore in 2020-21, according to a reply in the Lok Sabha on July 28.

“Digital payment volumes have grown from 1,085 crore transactions in financial year (FY) 2016-17 to 5,554 crore transactions in financial year 2020-21 at Compound Annual Growth Rate (CAGR) of 50.42 percent,” Devusinh Chauhan, Minister Of State For Communications said in his reply.

There are 58.51 internet subscribers per 100 population in the country as on April 27, 2021 and 34.60 internet subscribers per 100 population in the rural area as on December 31, 2020, the reply to the Parliament noted.

 India has a great market for digital and tech based solutions with every 3 seconds a new user joining the internet. It also has the cheapest data rates in the world and close to 700 million internet users. India is leaping strides on digital solutions with the country’s digital economy expected to touch $800 billion by 2030.

Prime Minister Narendra Modi launched a digital payment solution e-RUPI on August 2. In addition to being a cashless and contactless instrument for digital payment, e-RUPI is a QR code or SMS string-based e-Voucher, which is delivered to the mobile of the beneficiaries.

Read: e-RUPI | 8 things to know about India’s new digital payment solution to be launched today

“In June 2021, UPI recorded 2.8 billion transactions worth ₹5.47 trillion. UPI now has more than double the number of transactions that American Express does globally,” Amitabh Kant, CEO, NITI Aayog, noted in his column last month. India’s transformation into a “digital society and knowledge economy” has improved ease of living to a great extent, he said.

“Universally accessible digital resources like the India Post which is the largest computerized and networked postal system in the world, the Ayush Sanjivani application, DigiLocker, UMANG app, Tele Law for legal advice, the SVANidhi scheme for street vendors and the launch of 10,000 BPCL CSC points for easy booking of gas cylinders are some of the tools that are maximising governance and minimising government for Indian citizens,” he added.