The unified payment interface (UPI) transactions in India saw a sharp rise of 650 per cent in semi-urban and rural stores this year, according to a report released on Tuesday. A report by branchless banking and digital network PayNearby said that there was growth of 25 per cent and 14 per cent in value and volume, respectively, in assisted financial transactions across semi-urban and rural retail counters in the country in 2022.
Although the average cash withdrawal per transaction dipped a little compared to last year, there was a 25 per cent increase in the demand for micro-ATMs and mPOS instruments. In 2021, the average cash withdrawal per transaction was Rs 2,620, this year it stood at Rs 2,595.
Financial institutions and NBFC’s EMI collections also grow by over 200 per cent. The cash collection business rose by over 200 per cent with a monthly average of Rs 1,400 crore. This indicates demand for lending and other financing solutions, bouncing back to the pre-pandemic levels, the report said.
Anand Kumar Bajaj, founder, MD, and CEO of PayNearby, said, “Bharat is aspirational, and the increased off-take of green shoot services like assisted commerce, OTT subscription, micro-lending validates our commitment to make these services easily available at a store nearby.”
The report said that this increase in transactions shows a shift in consumers in these regions, with more citizens adopting assisted digital means for their banking and lifestyle requirements and getting incorporated into the formal economy.
“We have serviced close to Rs 70,000 crore of digital services in the first 10 months of this calendar year and the steady growth of cash withdrawal business, together with the fast track adoption of some of these green shoot services indicate a steady recovery of our economy post the devastating impact of the pandemic,” Bajaj added.