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[2 years of demonetisation] 5 trends that defined India’s digital payments industry since

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08.11.2018

In one stroke two years ago, PM Narendra Modi changed the fate of the digital payments industry of the country through demonetisation.

Two years ago, Prime Minister Narendra Modi put the entire nation in a frenzy. In one stroke, the government made Rs 500 and Rs 1,000 denomination notes invalid, leaving the country of 1.3 billion in a limbo.

As citizens queued up outside banks to deposit old currency notes in exchange for new ones, the digital payments ecosystem saw a huge opportunity open up. Right after the prime minister announced the ban on high-value currency notes, experts told YourStory that digital payments in the country will rise sharply and could easily double over the next couple of months.

How demonetisation drew a line in the heart of India

And they did!

Two years later, the Reserve Bank of India (RBI) in its annual report said all payment and settlement systems - NEFT, IMPS, UPI, NACH, card payments, Electronic Clearing Systems as well as Forex and market clearing systems – have seen a 44.6 percent increase in volume in 2017-18 and an 11.9 percent increase in the value of funds transferred.

In the annual report, RBI also said that during the financial year 2016-17, the volume of transactions through digital payment systems witnessed a 56 percent increase, with the value of funds increasing by 24.8 percent.

The digital retail payment infrastructure, which includes card payments, UPI and........

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