The National Payments Corporation of India (NPCI) expects all banks in the country, including cooperative banks, to migrate to digital payments
mode by March 2018.
“Almost all banks have tied up with NPCI.
Our idea is to cover all banks — even the cooperative banks
— within a year, say by March 2018. All banks in the country will be a part of the digital payments
system”, said A P Hota, managing director and chief executive officer, NPCI.
Currently, 56 banks are shareholders of NPCI
— they include 19 public sector lenders, 17 private banks, three foreign banks, 10 regional rural banks
and seven multi-state cooperative banks.
The Government of India has set a target of 25 billion digital transactions
in this financial year. If achieved, the volume would be nearly three-fold growth over the 9.10 billion transactions logged in FY17.
"In the April-June quarter, the target for digital transactions
was 4 billion but we achieved 3.4 billion. Digital transactions
slowed in the first quarter but we are positive that we will achieve the target for this financial year. More publicity and awareness is needed to boost digital transactions,” Hota said.
The volume of digital transactions
has been fixed at 6 billion, 7 billion and 8 billion in the second, third and fourth quarters, respectively.
Bill payments and electronic transit payments are poised to drive the growth for digital transactions
in the future.
has built a scheme called the National Electronic Toll Collection System for transaction processing, clearance and settlement, dispute management and a mapper for capturing vehicle details.
"We want to bring electronic payments
in the transit space in a big way. We have covered 360 of the 375 toll gates on the national highways. But, the electronic payments
system is only available in one lane — we need to extend to all lanes on the national highways and also to the state highways,” he said.
NPCI's Bharat Interface for Money (BHIM) app has crossed 16 million downloads and an active customer base of 4 million by the end of June. The BHIM app is a common platform across the nation for making simple, easy and quick payments.