NEFT creates single-day record with 4.1 crore transactions: RBI Bulletin

NEFT at record high: The National Electronic Funds Transfer (NEFT) set a remarkable record by processing an unprecedented 4.1 crore transactions in a single day on Feb 29, the Reserve Bank of India said in its latest RBI Bulletin. This highlights the remarkable surge in digital transactions across various payment platforms.

Over the past decade, NEFT and Real Time Gross Settlement (RTGS) have witnessed exponential growth, with NEFT recording a staggering 700 per cent surge in volume and a substantial 670 per cent increase in value. Meanwhile, RTGS experienced a robust 200 per cent uptick in volume and an impressive 104 per cent rise in value from 2013-14 to 2022-23.

UPI 

Amid this digital revolution, the Unified Payments Interface (UPI) emerged as a standout performer, boasting the highest volume growth among all payment modes. Between March 2023 and January 2024, UPI added a whopping 6.65 crore new users, solidifying its position as a preferred choice for digital transactions. 

To streamline cross-border payments, NPCI International Payments Limited (NIPL) inked a strategic partnership with Eurobank SA, a leading bank in Greece, facilitating seamless remittances from Greece to India through UPI channels.

Simultaneously, the Bharat Bill Payment System (BBPS) witnessed a surge in adoption, driven by businesses and consumers utilising the platform for utility bill payments and high-value transactions. 

This surge in usage translated into an uptick in BBPS transactions in value terms. Recognizing the importance of inclusivity and efficiency, revisions have been made to the BBPS framework, welcoming non-bank payment aggregators to participate as operating units starting April 1, 2024.

In a bid to enhance convenience and safety in digital payments, both bank and non-bank issuers have received authorization to issue prepaid payment instruments (PPIs) for payments across various public transport systems.

Furthermore, regulatory amendments in the debit and credit card segment aim to fortify regulations, including provisions for billing cycle flexibility and co-branding arrangements between banks and non-banking financial companies (NBFCs). 

The updated regulatory sandbox framework underscores the RBI's commitment to fostering innovation while ensuring compliance with the Digital Personal Data Protection Act of 2023.