Payment Systems in India-2022
In November, digital transactions across payment modes built upon their robust performance during the festival season in October. Retail transactions grew impressively owing to positive consumer sentiments11 and a high-spirited wedding season.12 Bharat Bill Payment System (BBPS) transactions grew steadily on the back of loan repayments and FasTag segments. Transactions in loan repayments doubled, which is indicative of reviving household finances. This is corroborated by the strong growth observed in the National Automated Clearing House (NACH) debit transactions related to inter alia loan repayments, insurance premia and investment in mutual funds. The growth (y-o-y) in the Unified Payments Interface (UPI) was spearheaded by a rise in Person-to-Merchant (P2M) transactions in October and November. This growth in P2M transactions with a high transaction volume under merchant categories like groceries and supermarkets, restaurants, departmental stores, drug stores and pharmacies signals increasing usage of the UPI for day-to-day purchases. In order to enhance the ease of making payments concerning e-commerce and investments in securities, the Statement on Developmental and Regulatory Policies on December 7, 2022 announced that the capabilities in UPI will be further augmented by introducing a single-block and multiple-debits functionality. Also, the scope of Bharat Bill Payment System (BBPS) is being expanded to include additional categories of payments and collections, both recurring and non-recurring, and for all category of billers (businesses and individuals).