Digital payment platforms' growth slowed in January 2023, according to the latest data from the Reserve Bank of India (RBI). The growth in transactions of UPI, IMPS, and BBPS was lower in both volume and value terms on a year-on-year basis with only NEFT doing better than its counterparts.
Despite the slowdown, the RBI has a positive outlook on the user penetration rate of digital payments in the country and expects India to exceed the average penetration rate of the world in 2023.
Here’s what RBI data tells about the growth of various digital platforms in India.
UPI
As per RBI’s February 2023 bulletin, the growth rate in Unified Payments Interface (UPI) transactions stood at 74.1 percent year-on-year in January 2023 in volume terms which are lower in comparison to the growth rate of 100.5 percent witnessed in January 2022.
In value terms, the growth rate for UPI came in at 56.1 percent YoY in January this year, compared to the growth of 93 percent last year in the same month.
IMPS
The Immediate Payment Service (IMPS) recorded a single-digit growth in volumes at 7.8 percent in January 2023, which is far lower than the 27 percent growth witnessed in the same month last year.
In value terms, IMPS witnessed a YoY growth of 23.4 percent in January 2023 as against the growth rate of 34.1 percent a year ago.
Bharat Bill Payment System
Bharat Bill Payment System (BBPS) saw the YoY growth halved to 59.8 percent in January 2023 in volumes as compared to the growth rate of 130.2 percent in January 2022.
In value terms, the BBPS’ growth rate stood at 66.6 percent in January 2023 which is significantly low when compared to the growth rate of 148.8 percent seen in January last year.
NEFT
NEFT transactions stood out from the rest in terms of growth in both volumes and values. In volume terms, NEFT recorded a growth of 32.2 percent in January up from 26.2 percent seen in January 2022.
In value terms NEFT garnered a growth of 15 percent up from 12.8 percent seen in January 2022.
RTGS
RTGS transactions growth slowed to 12.6 percent in January as against 15.7 percent in January 2022. However, in value terms, the growth went up to 20.1 percent in January from 13.9 percent in the same month a year ago.
Despite the mixed results, the RBI in its bulletin said that “digital transactions advanced across various modes and the retail segment continued to gain strong traction, led by the Unified Payments Interface (UPI).”
Going ahead in 2023 “the user penetration rate of digital payments in India is expected to exceed that of the world,” the bulletin added.
(Edited by : Sudarsanan Mani)
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