Page 45 - Edelweiss India Conference 2022 FLIPBOOK

New Energy Digital Manufacturing Capital Markets Human Capital

300
6000 10,00,000
250
8,00,000
4500
200
6,00,000
150 3000
4,00,000
100
1500
50 2,00,000
0 0 0
Apr 16 Oct 16 Apr 17 Oct 17 Apr 18 Oct 18 Apr 19 Oct 19 Apr 20 Oct 20 Apr 21 Oct 21 Jul 16 Jan 17 Jul 17 Jan 18 Jul 18 Jan 19 Jul 19 Jan 20 Jul 20 Jan 21 Jul 21

No. of banks live on UPI Volume (In Mn) Value (In Cr)

UPI was not an overnight success though. Its roots go back to 2010, when the NPCI was
formed. Then, India’s payment systems were outdated vis-à-vis other countries with
decentralised networks and multiple clearing houses being the norm until as late as the

However, the government’s decision to not be a part of clearing house operations as well
the RTGS system led to creation of a separate body: the NPCI. The NPCI was responsible
to the RBI – the banking regulator – but it operated as an independent body. In its early Consumers are rapidly
days, the NPCI earned revenue from the transfer of National Financial Switch (NFS), which switching to digital
payments as they

responsible for the development of the Immediate Payment System (IMPS). provide simple, safe
and convenient ways
Digital payments have been growing steadily over time; however India continues to be a to transfer money
cash-driven economy. In FY21, digital payments market size by value stood at approximately across accounts
USD20tn with 43 billion transactions during the year.

Consumers are rapidly switching to digital payments as they provide simple, safe and
convenient ways to transfer money across accounts. Similarly, for merchants, acceptance

digitalisation beyond merely accepting digital payments; digitalisation is helping them in
other aspects of business such as credit, invoicing, maintaining ledger and bookkeeping,
helping their business to grow further.

One of the key examples of changing trends during COVID-19 was seen prominently in at
mom-and-pop (kirana) stores across the country. Kirana stores were instrumental in driving
essential retail consumption throughout the lockdown periods. With increased focus on
social distancing, government guidelines prescribing high hygiene and safety standards,
merchants moved to the digital mode of payments, leading to an increase in digital
consumer to merchant payment volumes.

Edelweiss Securities Limited 43