Skip to main content

Digital transaction under UPA grew at higher rate than under NDA despite Modi's demonetization: Expert

By Our Representative
A recent analysis of digital transactions has exploded the myth being spread by the Government of India about its spectacular growth. A 45% growth in 2016-17 in retail transactions in no way could be characterized as a “big leap in retails transactions”, alleged to have been achieved by “chocking of India’s physical currency supply” in November last year through.
The expert analysis by James Wilson, a member of Kerala-based Mullaperiyar Special Cell, says that there was in fact a “bigger leap” during the UPA days: It was recorded 53% between 2011-12 and 2012-13 and 49% between 2012-13 and 2013-14.
However, the next two years, 2014-15 and 2015-16, in the first two years of the BJP-led NDA came to power, the growth was to the tune of 37% and 40% respectively. At 45% growth in the last financial year, if at all, it helped surpass the earlier two years’ growth rate, yet it was lower than the one between 2011 and 2014.
Basing on latest Reserve Bank of India (RBI) data, released on June 16, 2017, Wilson says, the digital transactions in value terms did not rise despite the fact that the “currency in circulation (CIC) reached a figure of Rs 15.287 lakh crore” falling short by 15% of the CIC of Rs 17.977 lakh crores available on circulation as on November 4, 2016, the week prior to the announcement of demonetization.”
Quoting data from the National Payments Corporation of India (NPCI), the umbrella organisation for all retail payment systems in India, claiming to allow all Indian citizens to have unrestricted access to e-payment services, Wilson says, no doubt, in number of transactions, the Unified Payment Interface (UPI) transactions appeared to make a giant leapfrog.
Thus, from just 1,03,060 transactions in October, 2016 they went up to 91,67,277 transactions in May 2017, recording a stupendous 89 times growth. Value-wise, too, UPI recorded a growth of Rs 0.49 billion to Rs 27.65 billion, more than 56 times growth during the same period.”
Similarly, Prime Minister Narendra Modi-supported BHIM (Bharat Interface for Money) mobile app, developed by NPCI, also based on the UPI interface, recorded growth in transactions from 17,17,696 transactions in January 2017 to 39,75,750 transactions in May 2017, a 2.3 times growth. Amount-wise, BHIM recorded a growth from Rs 3.56 billion to Rs 13.07 billion during the same period.
“The growth of UPI as well as BHIM (a subset of UPI) may create an impression that we made a giant leap in terms of digital transactions. But it is important to place this data next to ground realities”, insists Wilson.
“As per RBI data, during April, 2017, total cash of Rs 2,171 billion was withdrawn from ATMs alone (no data of bank withdrawals is considered here), while the UPI transaction figure was just Rs 22.41 billion during the same period. That is, UPI-based transactions replaced cash by around 1%”, he underlines.
Wilson adds, “The NPCI website claims that as of May 31, 2017 BHIM crossed 14.54 million downloads. We have more than 300 million smartphones in India, which means that BHIM penetration is still below 5% of total smartphone penetration.”
Coming to “credit cards, debit cards and prepaid payment instruments (PPIs)”, Wison says, “This is the one sector which seen a remarkable year-to-year growth of 65% during the last financial year. This growth is basically driven by a substantial jump in the debit card POS usage which shows a growth of 107%.”
“Of course, demonetization forced people to use their debit cards extensively for personal consumption expenses”, he says, adding, “But, we should remember that the total amount of Rs 7421 billion under the card payments is just over 5% of total retail payments of Rs 1,39,611 billion”, adding, “Both debit card and credit card usage are still around 4% of the retail pie.”

Comments

TRENDING

Mystery around Gujarat PSU 'transfer' of Rs 250 crore to Canadian firm Karnalyte

By AK Luke, IAS (Retd)*
While returning from a Board meeting of the Oil India Limited (OIL) in Ahmedabad some time in 2012, two officers of the Gujarat State Fertilizers and Chemicals Ltd (GSFC), Nanavaty and Patel,  saw me off at the airport. They said they were proceeding to Canada in connection with a project GSFC had entered into with a company there. As we were running late, I hastily wished them the best.

Savarkar in Ahmedabad 'declared' two-nation theory in 1937, Jinnah followed 3 years later

By Our Representative
One of the top freedom fighters whom BJP and Prime Minister Narendra Modi revere the most, Vinayak Damodar Savarkar, was also a great supporter of the two nation theory for India, one for Hindus another for Muslims, claims a new expose on the man who is also known to be the original proponent of the concept of Hindutva.

J&K continues to be haunted, as parts of India 'degenerate' into quasi-Kashmir situation

By Rajendran Narayanan*, Sandeep Pandey**
“Jab har saans mein bandook dikhe toh baccha kaise bekhauf rahe?” (How can a child be fearless when she sees a gun in every breath?) remarked Anwar, a gardener from Srinagar, when asked about the situation in Kashmir. On November 30, 2019, a walk through an iron gate in a quiet neighbourhood of Srinagar took us inside a public school. It was 11 am when typically every school is abuzz with activity. Not here though.

Indians have made 119 nations their ‘karma bhumi’: US-based Hindu NGO tells Rupani

Counterview Desk
In a stinging letter to Gujarat chief minister Vijay Rupani, the US-based Hindus for Human Rights (HfHR), referring to the report citing his justification for the Citizenship Amendment Act (CAA) – that “while Muslims can choose any one of the 150 Islamic countries in the world (for residence), India is the only country for Hindus" – has said, he should remember, Hindus have made several countries, including USA, their home.

Dalits rights meet planned on how citizenship law 'negates' Ambedkar's equality focus

By Our Representative
A Dalit rights meet has been planned at the Dalit Shakti Kendra (DSK), Sanand, Ahmedabad district, to discuss implications of the Citizenship Amendment Act (CAA), passed by Parliament on December 10-11, for Dalits, Adivasis and other marginalized sections. Announcing the decision, DSK director Martin Macwan said, the meet would take place on December 25, 2019, at 11.00 am, to commemorate the anniversary of burning of copies of Manusmriti by Dr BR Ambedkar.

What about religious persecution of Dalits, Adivasis, asks anti-CAA meet off Ahmedabad

By Rajiv Shah
A well-attended Dalit rights meet under the banner “14 Pe Charcha” (discussion on Article 14 of the Indian Constitution), alluding to Prime Minister Narendra Modi well-known campaign phrase of the 2014 Parliamentary elections, “chai pe charcha” (discussion over cup of tea), organized off Ahmedabad, has resolved on Wednesday to hold a 14 kilometres-long rally on April 14 to oppose the controversial Citizenship Amendment Act (CAA), enacted on December 10-11.

'Allow critical thinking': SAARC-sponsored varsity teachers support protesting students

By Our Representative
Teachers of the high-profile South Asian University (SAU), a New Delhi-based international institute sponsored by eight member states of the South Asian Association for Regional Cooperation (SAARC) – Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka – have supported “peacefully protesting students and other citizens” against the Citizenship (Amendment) Act (CAA), 2019 and the National Register of Citizens (NRC).

Upendra Baxi on foolish excellence, Indian judges and Consitutional cockroaches

By Rajiv Shah
In a controversial assertion, top legal expert Upendra Baxi has sought to question India's Constitution makers for neglecting human rights and social justice. Addressing an elite audience in Ahmedabad, Prof Baxi said, the constitutional idea of India enunciated by the Constituent Assembly tried to resolve four key conflicting concepts: governance, development, rights and justice.

Kerala governor turned History Congress into political arena, 'insulted' Prof Irfan Habib

Counterview Desk
In a signed statement, office bearers of the Aligarh Society of History and Archaeology (ASHA), Prof Syed Ali Nadeem Rezavi (president), Prof Jabir Raza (vice-president), Prof Manvendra Kumar Pundhir (secretary) and Prof Farhat Hasan (joint secretary), have said that Kerala governor Arif Mohammad Khan had sought to insult veteran historian Prof Irfan Habib, 88, at the 80th session of the Indian History Congress, even as turning it into his “political arena”.