Tag: imps

Digital payments slow down in April as virus transmission accelerates, BFSI News, ET BFSI

Banking & Finance

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The slowdown in the economic activity due to lockdowns and restrictions in April echoed in the digital payment transactions in April.

The growth of digital payments slowed in April over March, remained higher than in February, according to a report.

The Unified Payments Interface (UPI) transactions dropped from the Rs 5­lakh crore peak in March to Rs 4.93 lakh crore via 264 crore transactions.

The Immediate Payment Service (IMPS) saw 32.29 crore transactions worth Rs 2.99­lakh crore in April as against 36.31 crore transactions of Rs 3.27 lakh crore in March.

Bharat Bill pay platform processed 3.51 crore transactions worth ₹Rs 5,201.92 crore in April as against 3.52 crore payments amounting to Rs 5,195.76 crore in March.

As the movement of people and goods slowed, the FASTags, AePS transactions through the NETC saw a sharp decline in April at 16.43 crore transactions worth Rs 2,776.9 crore. It was 19.32 crore transactions worth Rs 3,086.32 crore in March.

The Aadhaar enabled Payment System saw 7.42 crore transactions valued at Rs 22,139.05 crore in April as against 7.78 crore payments worth Rs 22,697.82 crore in March.

Last fiscal

UPI transaction volumes surged 43.2% in the first quarter of the last fiscal, 98.5% in the second quarter 104.6% in the third and 112.5% in the fourth quarter.

While IMPS volumes degrew 9.6% in Q1, they rose 26% om Q2. 40.5% in the third quarter and 42.9% in the fourth quarter.

National Automated Clearing House (NACH) volumes grew 32.8 in the first quarter, 13 in second, 0.9 in third while they degrew 10.2 in the fourth.

BBPS volumes grew 66% in Q1, 103.2 in Q2, 84.4 in Q3 and 102.7 in Q4 while National Electronic Toll Collection, the NHAI’s Fastag system logged 83.9 growth in Q1, 249.2 in Q2, 195 in Q3 and 75.3 in the fourth quarter.

On the other hand, RTGS volumes degrew 26.2 in Q1, logged 3.1 in Q2, 10.2 in third and 31.1 in the fourth quarter.

NEFT volumes degrew 3.9% in the first quarter, grew 9.8 in second, 23.2 in third, 17.8 in the fourth quarter.



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How pandemic ushered in payments revolution in India, BFSI News, ET BFSI

Banking & Finance

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They may not be of big value, but many swipes have helped usher in a retail payments revolution right amid the pandemic.

While there has been a slowdown in the wholesale transaction value, the volumes have grown huge. A similar surge was seen in the immediate aftermath of the demonetisation of high-value notes in 2016.

Transactions through National Electronic Funds Transfer (NEFT), National Electronic Toll Collection (NETC), and the Bharat Bill Payment System (BBPS) grew robustly in fiscal 2021 over the previous year. Retail payment platforms such as Unified Payments Interface (UPI), Immediate Payment Service (IMPS), and National Automated Clearing House (NACH) saw a near doubling of both transaction volume from 12.5 billion to 22.3 billion, and value from Rs 21.3 lakh crore to Rs 41 lakh crore.

Volumes galore

UPI transaction volumes surged 43.2% in the first quarter of the last fiscal, 98.5% in the second quarter 104.6% in the third and 112.5% in the fourth quarter.

While IMPS volumes degrew 9.6% in Q1, they rose 26% om Q2. 40.5% in third quarter and 42.9% in the fourth quarter.

National Automated Clearing House (NACH) volumes grew 32.8 in the first quarter, 13 in second, 0.9 in third while they degrew 10.2 in the fourth.

BBPS volumes grew 66% in Q1, 103.2 in Q2, 84.4 in Q3 and 102.7 in Q4 while National Electronic Toll Collection, the NHAI’s Fastag system logged 83.9 growth in Q1, 249.2 in Q2, 195 in Q3 and 75.3 in the fourth quarter.

On the other hand, RTGS volumes degrew 26.2 in Q1, logged 3.1 in Q2, 10.2 in third and 31.1 in the fourth quarter.

NEFT volumes degrew 3.9% in the first quarter, grew 9.8 in second, 23.2 in third, 17.8 in the fourth quarter.

Value wise

UPI transactions scored an impressive growth value-wise too with the first quarter seeing 43.2% growth, the second 98.5%, the third 104.6% and the fourth 112.5%.

IMPS degrew 4.8 in Q1 but picked up in the second quarter with 27.9% growth, 34.6% in Q3 and 40.6% in the fourth quarter.

NACH transactions grew 20.4% value-wise in the first quarter, 10.3 in Q2, 6.8 in Q3, 1.3 in Q4.

BBPS logged 62.4% growth in the first quarter, 108.9% in the second, 83.5% in the third and 131.9% in the fourth quarter.

NETC transactions valuewise grew 61.4% in Q1, 181% in Q2, 139.3% in Q3, 66.2% in Q4.

On the other hand, RTGS transactions’ value degrew for the entire fiscal, falling 37.9 in the first quarter, 28.6% in the second, 7.7% in Q3 and 2.9% in the fourth quarter.

NEFT degrew 20.9% in the first quarter but grew 12.4% in second, 26.6% in third and 15.4% in the fourth quarter.

After demonetisation

RBI data shows a spurt in digital transactions immediately after demonetisation. Transactions through debit card at point of sale terminals and m-wallets increased by 134% and 163%, respectively, between October 2016 and December 2016.



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Year-end pressure hits fund transfers via IMPS, UPI in millions, BFSI News, ET BFSI

Banking & Finance

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Several customers could not transfer funds instantly in the first two days of the new financial year as the core banking systems at some banks failed to process IMPS (Immediate Payment Service) or UPI (Unified Payment Interface) transactions.

Bank systems were clogged due to year-end system maintenance. Transactions were delayed for more than 24 hours, which otherwise would have been possible in a few seconds. Customers of top banks with large retail interfaces are said to have suffered the most.

This triggered a flood of complaints on Twitter even as National Payments Corporation of India (NPCI), an umbrella organisation of retail payments and settlements, issued a clarification. The latest outage was restricted to a few large banks and highlights the risks of 24×7 payments systems with more transactions moving online. An estimated 4.5 lakh transactions have been affected, say market experts.

“For both IMPS and UPI to function well, availability of the banks’ Core Banking Systems is mandatory,” said Dillip Asbe, MD and CEO at NPCI. “However, they were not functioning in full strength due to the financial year-end processing, which is carried out on April 1 every year. We acknowledged that on social media.”

On April 1, IMPS and UPI are estimated to have reported about 9.7 and 76 million transactions. The very next day, those numbers inched up to 10.8 million and 90 million. In those two days, volumes were broadly 5-15 percent lower than then an average usual day.

The financial year end closing had led to some UPI and IMPS transaction failures at a few banks,” NPCI tweeted on April 2 post noon. “We have observed that most of these bank systems are back to normal since last evening. Customers may avail uninterrupted IMPS and UPI services.”

Bankers said that the failure rate for transactions was much higher than normal on April 1 as the down time for core banking systems for some banks extended as they updated for the new financial year.

“It impacted some banks for a long period. If the core banking for bank ‘A’ does not respond it means transactions to and from that bank do not go through,” said a senior bank executive.

It seems there were more than one bank which was impacted but it was not a widespread systemic issue,” said the person.

To be sure, the estimated failure of transactions at 4.5 lakh were less than 4.5% of the average 10 to 12 million daily transactions managed by the NPCI. However, it is much higher than the less than 0.50% failure rates the system faces in normal courses.

“But don’t forget UPI and IMPS are 24×7 systems; so these issues can occur sometimes,” said another senior bank executive.



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Bandhan Bank signs agreement to provide banking services to Army personnel, BFSI News, ET BFSI

Banking & Finance

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Private lender Bandhan Bank on Tuesday said that it has signed an agreement with the Indian Army to provide banking services to the personnel of the force. The bank got the mandate to maintain zero-balance salary accounts of the Army personnel, the lender said in a statement.

They will be offered other preferential services such as six per cent interest on balance over Rs one lakh, unlimited free ATM transactions across ATMs, waiver of issuance and annual charge on Shaurya Visa Platinum Debit Card and unlimited free NEFT/RTGS/IMPS/DD transactions.

Bandhan Bank Shaurya Salary Account also offers protection for self and assets. This includes free personal accident insurance of Rs 30 lakh, air accident cover of Rs one crore and free educational benefit of up to Rs one lakh per year for four years to a dependent child in case of accidental death of the account holder, the statement said.

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