The volume of total payments increased by 63.8% between 2021-22, up from 26.6% in 2020-21, with digital payments accounting for 99% of total payments.
In terms of value, total payments grew by 23.1%, reflecting a pickup in economic activity. Almost all the digital instruments have surpassed the levels seen in end-March 2020, however, RTGS transactions still lag behind.
The conventional paper-based instruments such as cheques and demand drafts now constitute a negligible share in both volume and value of payments, according to the ‘Report on Trend and Progress of Banking in India 2021-22’, released by the Reserve Bank of India on Tuesday.
During 2021-22, the average amount of fraud decreased substantially. Based on the date of occurrence of frauds, advances-related frauds formed the biggest category prior to 2019-20. Subsequently, however, in terms of the number of frauds, the modus operandi shifted to card or internet-based transactions.
Additionally, cash frauds are also on the rise. The number of fraud cases reported by PVBs outnumbered those by PSBs for the second consecutive year in 2021-22. In terms of the amount involved, however, the share of PSBs was 66.7 % in 2021-22, as compared with 59.4% in the previous year.