RBI reported e-payments increase

Electronic payments tools are growing in usage in India though with some sluggishness. As per data from Reserve Bank of India overall payments made via retail electronic payment systems - electronic clearing service (ECS), National Electronic Funds Transfer (NEFT) system, and credit and debit cards – increased 41% to Rs2,313.8 billion in the first half of 2008 against Rs1,6382.6 billion during the same period in 2007.

The number of transactions rose along with the volumes. In the firs half of 2008 the average number of transactions per month accounted for 54.8 million while in the same period last year the figure was 40.6 million.

Taken separately payments routed through NEFT system - a nation wide funds transfer system to facilitate transfer of funds from any bank branch to any other bank branch - accounted for around 46% (Rs1,069.8 billion) of the total retail electronic payments with 50,000 branches of 87 banks using the system. ECS payments - a mode of electronic funds transfer from one bank account to another bank account using the services of a Clearing House – increased 11% to Rs824 billion. Credit and debit card payments rose 33% to Rs420 billion.