PM Modi’s Jan Dhan Yojana, which has already been hailed as a massive success as more than 20 crore new bank accounts opened so far under this scheme, is triggering a new wave of financial revolution in India which has never been witnessed before.
As per reports coming in, transactions on RuPay cards has now breached all records. 27 lakh transactions are happening daily using RuPay cards, which is an increase of 25% compared to October, 2015. In fact, as more and more users are slowly warming up to the idea, the transactions are also increasing.
Out of 20 crore Jan Dhan Accounts and related RuPay cards issued so far, around 9 crore are being actively used, on a daily basis. As per National Payments Corporation of India (NPCI) latest data, each transaction done via RuPay card is worth on an average Rs 2000, which means that more than Rs 5 lakh crore worth of transactions are happening solely using RuPay cards daily. (27 lakh total transactions daily)
Overall, there are 170 million RuPay cards issued so far all over India; and as per rough estimates, around 100 million are being actively used on a monthly basis. If observing broadly, then Rs 30,000 crore has been deposited across 20 crore Jan Dhan accounts as of now.
AP Hota who is the Managing Director and Chief Executive Officer, National Payments Corporation of India has specifically said that this is a significant number, considering that RuPay cards and Jan Dhan accounts were primarily designed for weaker section of the society. Government never expected these accounts to heavily use Rupay cards; debunking all theories, the RuPay cards are now in wide usage.
In the last three months, around 3 crore new bank accounts were opened under Jan Dhan plan, and the trend is now gaining momentum. In the coming days, we may witness more heavy usage of Rupay cards, which can make existing market biggies Master Card and Visa greatly uncomfortable.
We have already reported how they are concerned about the increasing usage of RuPay cards. And now, it seems that their trouble has just started.
Here are three reasons why RuPay card may end the monopoly of Master Card and Visa in near future.
JAM Will Revolutionize India
Meanwhile, R.S. Sharma, Chairman of Telecom Regulatory Authority of India has said that digital payments in India is all set to explode in 2016. Primarily, he shared that JAM would be responsible for the same. (JAM = Jan Dhan Yojana; Aadhar Cards and Mobile).
He also proposed that the extra Rs 20 charged by Indian Railways for booking online tickets would be reversed and Govt. agencies should promote more digital payments, compared to cash transactions.
He said, “I am looking forward to every person being empowered by mobile handset in his hand to do all kinds of transactions from that mobile. Banking should become so ubiquitous….it should become as easy as making a phone call,”
As per Sharma, 2016 will witness a new wave of digital transactions, which can disrupt several industries. Last week, we had shared how digital payments have surpassed cash transactions in India; and the good thing is that the trend has just started.