Immediate Payment System or IMPS–wherein money is transferred instantly using text messaging or online banking–emerged as the highest growing digital payment method in 2016, growing 200% from January to December 2016. Transfers using National Electronic Funds Transfer (NEFT), through which money is transferred in batches, after approval from the banks sending and receiving money, rose 31% in 2016.
Data from the RBI pertaining to digital payments until December 20 has been used for this analysis. IndiaSpend extrapolated that data to calculate the total number of transactions and amounts for December 2016.
Transactions through mobile wallets, or prepaid payment instruments (PPI)–which saw transfers of Rs 5,000 crore nationwide in January 2016–rose 20% in nine months, to Rs 6,000 crore in October 2016, only to drop to Rs 1,300 crore in November 2016, according to Reserve Bank of India data. Mobile wallets make up about half of all payments under PPIs.
PPI transfers in December will amount to Rs 1,900 crore, a third of what was transferred a month before demonetisation, if data until December 20 are extrapolated for the entire month.
