Digital transactions volume up 45% in FY23; crosses 10,998 cr in FY24 so far: FinMin

The total volume of digital payment transactions surged from 2,071 crore in FY 2017-18 to 13,462 crore in FY 2022-23, achieving a Compound Annual Growth Rate (CAGR) of 45%, the government has said.

Dr. Bhagwat Kisanrao Karad, Union Minister of State for Finance, said in Parliament that it surpassed 10,998 crore during the current financial year until 27th November, 2023. "To enhance the comprehensive and coordinated handling of cybercrimes, the Centre has taken several measures, including raising awareness about cybercrime, issuing alerts/advisories, conducting capacity building and training programs for LEAs/Prosecutors/Judicial Officers, and improving cyber forensic facilities," the minister elaborates.

He says the Indian Computer Emergency Response Team (CERT-In) collaborates closely with service providers, and regulators to track and disable phishing websites and facilitate investigations into fraudulent activities, issue alerts and advisories, and operate an automated cyber threat exchange platform for collecting, analysing, and sharing tailored alerts.

In addition, the minister states, the RBI is also promoting digital literacy by holding financial literacy camps, sending financial awareness messages and carrying out multi-channel public awareness media campaigns.

The Reserve Bank of India in July this year had enhanced the transaction limit for small-value digital payments in offline mode from ₹200 to ₹500 with effect from August 24.

"By removing the need for two-factor authentication for small value transactions, these channels enable faster, reliable, and contactless modes of payments for everyday small value payments, transit payments, etc. Since then, there have been demands for enhancing these limits. To encourage wider adoption of this mode of payments and bring in more use cases into this mode, it is now proposed to increase the per transaction limit to ₹500," RBI had said.

India's digital payments ecosystem is thriving. Rajeev Chandrasekhar, the union minister of state for electronics and information technology, last week had said the country’s digital economy will account for 20% of GDP by FY26.

“In 2014, the digital economy of India stood at 4.5% GDP in contrast to today’s 11% GDP and by 2026 the digital innovation economy will account for 20% of GDP,” said Chandrasekhar while speaking at the ‘Startup Conclave 2023’ in Gujarat.

He added that India’s position has been transformed from being three decades of a consumer of technology to a producer of devices, products, platforms and solutions for the world at present.