Demonetization Raises Digital Payments and Growth Jumps over 30% as the acute shortage of cash has driven up both the value and the volume of the Debit cards and credit cards transactions at Point-of Sale.
The Data from the Reserve Bank of India shows the volume and value of the correct transactions in the first 19 days of December for the sample of the Four Banks and is up-to nearly 30 Percent over the Period of the November 2016.
while the Demonetization has raise’s the usage of the Cards and there has been a drop in the overall value of Credit card transactions and the card transaction are shown as a proxy for the Consumer Confidence.
The Exact value of the Credit card and the debit card transactions during this December 1-19 was Rs 28,620 Crore compared with the Rs 35,240 crore for this month November 2016, That would be smaller than the Rs 51,121 crore clocked in October by this Festive Season.
Bankers are optimistic that the value to pick up in the Second Half of December as consumers resume for fuel and airline tickets and payments with cards, Vijay Jasuja, MD,SBI Cards and this is the Second largest credit card issuer, said that TOI has been an overall decline in Credit Card Spends due to a Drop in the High value of Customers.
The Volume of Card transactions at POS Machines has also Picked up Pace this Month and with the Four Bankers were recording 168.9 Million transactions till December 19 up from 130.15 million transactions in the period of November , The total number of transactions in November 205.5 Million.
According to the sources at ICICI Bank debit and credit cards transactions have picked up after demonetization but not the Extent by Public sector banks, as well as at the same time the average value of credit card transaction in November Dropped and the card transaction are now showing for the coffee payments as low as 80.