Bank Branches and ATM will come down

It is expected that the large number of bank transactions and ATMs would be significantly reduced in digital transactions. The basis for this assumption is the vision document prepared by the Reserve Bank of India (RBI), which defines the goals of Payment and Settlement, 2019-2021.

The RBI has begun issuing guidelines for planned development as the ‘payment and settlement’ system of the economy. The first line was published in 2002. The current guideline is aimed at the development until December 2021. Check-based transactions have seen a sharp decline. RBI hopes that this trend will be stronger. The objective is that check-based transactions should be at least 2% of ‘electronic’ transactions by 2021.

The number of transactions through the widely used Unified Payments Interface (UPI) and IMPS (Immediate Payment Services) system is 100% growth each year up to 2021. NEFT (National Electronics Fund Transfer) will target 40% annual growth in the system. The expectation on debit card transactions through Point of Sale (POS) in factories is expected to be 35 per cent. 44% of total use of debit cards including ATMs must be through the POS terminals. It is expected not only in quantity but in the value of transactions. The number of terminal for PS2 must be 50 lakhs before the end of 2021.

Mobile phone-based payment transactions are expected to increase by 50%. The possibility
indicates that the total number of smartphone users is over 35 crore. The guidelines also include measures to be taken into consideration by the RBI for 24 hours, such as the Nets and the hike in the amount of transfer money.