The volume of digital payments in India has rebounded in May after it plunged following the Covid-19 related lockdown.
According to an Economic Times report, digital transactions on major National Payments Corporation of India (NPCI) operated channels increased last month compared to the volume reported in April.
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The number of transactions on Unified Payments Interface (UPI), Immediate Payment System (IMPS), Bharat Bill Payment System (BBPS) and National Electronic Toll Collection (NETC), all grew last month.
The increase indicates a gradual revival in commercial activities following a dull period during the lockdown.
According to NPCI data, UPI processed 1.23 billion transactions last month worth INR2.18trn ($28.78bn). The transaction volume is the second highest ever to be recorded after the figure of February 2020, when it clocked INR2.22trn of payments.
Similarly, IMPS recorded 166 million transactions last month, while NETC-powered Fastag registered 55 million.
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By GlobalDataBoth the figures are significantly higher compared to the volume of transactions reported in April.
Razorpay CEO Harshil Mathur was quoted by The Economic Times as saying: “The overall digital transactions in our country had also dropped during lockdown, primarily due to restrictions imposed on non-essential sectors and people having to stay indoors and not having enough spending power.
“But now, with the situation starting to slightly ease out in parts of the country, we are seeing a spike in transactions in the last few days, particularly in e-commerce.”
The increase is reported at a time when India is gradually reopening the country and relaxing Covid-19 related curbs.
India has confirmed more than 191,000 coronavirus cases, as of 1 June. The death toll stood at 5,415.
