According to market experts, the increase in credit card spending is due to the festive season. During the festive season, companies came out with EMI schemes and promotional offers, due to which people chose the mode of payment through credit cards.
No cash, now people are paying online
According to the latest paper by Pradeep Bhuyan, economist of the Currency Management Department of the Reserve Bank, digital transactions in India have increased in such a way that the use of cash is decreasing rapidly. The share of digital payments to double from 14-19 per cent in March 2021 to 40-48 per cent in March 2024, with UPI playing a key role.
According to the RBI paper, recent years have seen impressive growth in retail digital payments (RDP), which is the total digital payments excluding real-time gross settlements.
Launched in 2016, UPI has accounted for the highest share in retail digital payments (RDP) volumes in the last five years.
The volume of UPI based transactions increased by 52 percent to 78.97 billion in the first half of this year, compared to 51.9 billion in the same period last year. Similarly, the value of transactions also increased by 40 percent from Rs 83.16 lakh crore to Rs 116.63 lakh crore in the first six months of this year.
