The aggressive push to a digital payments and settlement system has paid rich dividend to the Reserve Bank as the share of paper clearing in retail payments has come to trickle in FY2020, show the latest RBI data.
In FY2020, the share of paper clearing in total retail payments plunged to just 2.96 per cent in terms of volume and to 20.08 per cent in terms of value, the data showed.
In FY2016, when the central bank began to push digital payments aggressively on the back of the contentious note-ban, paper/cheque clearings accounted for a high of 15.81 per cent in volume and nearly half in terms of value at 46.08 per cent of the total retail payments.
That the efforts towards digitization have been very successful is clear from the steady fall in the share of paper clearing. From 15.81 per cent in volume and 46.08 per cent in terms of value in FY2016, the same shrunk to 11.18 per cent…