17,000 new credit cards issued by ICICI linked to wrong users

As people are becoming more and more accustomed to online payment, the number of ATM users is decreasing. Previously a person used to go to ATM 16 times in a year. Now he is going only eight times. As per SBI’s eco research if UPI transaction increases by Re 1, transaction by debit card decreases by 18 paise.

This trend of decline in withdrawal from ATM began from November 2018. The biggest reason behind this is the increasing popularity of digital transactions amongst Indians. In FY 2017 there were 1.8 crore UPI transactions and now in FY 23 the number of transactions increased to 8,375 crore. In value terms, payment through UPI has increased 2,000 times. Previously there were transactions worth Rs 6,947 crore and now that number has skyrocketed to Rs 139 lakh crore. You can assess the popularity of digitisation in India by the fact that small cities and villages account for 60% share in these payments.

Transaction is also increasing through credit card. In FY 23, transaction through credit cards has increased 47% to reach Rs 14 lakh crore. Most credit card transactions have occurred in March. During the month transactions worth Rs 1.37 lakh happened. This is the 13th consecutive month when transactions through credit card have remained above Rs 1 lakh crore. Most of the transactions have occurred through E-commerce or point of sale transactions. E-commerce payment accounted for 63% share. This clearly indicates changing spending patterns by Indians.

The trend of demonetisation triggered the transition toward digital transactions. After that, UPI was introduced and it made payments very easy. At the same time, the internet and phones penetrated the nook and cranny of the country. All of this helped in creating the ecosystem that boosted the digital transaction.