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BENGALURU: There are early signs that India is finally turning into a digital payment economy less dependent on cash. For the first time, in the fourth quarter of 2019, the value of card and mobile payments at Rs 10.57 lakh crore exceeded ATM withdrawals which amounted to Rs 9.12 lakh crore.
After overtaking cash withdrawals, digital payments extended its lead in the first quarter of 2020. Card and mobile payments are now at Rs 10.97 lakh crore, even as ATM withdrawals declined 5% to Rs 8.66 lakh crore. If bankers are to be believed, the pandemic-induced lockdown has already put this transformation on a fast-track.
“This trend continued through April and May with physical restrictions and lesser movement of goods and people with the lockdown. India’s posted the sharpest growth in digitization in this period compared to America, the UK, Thailand and Singapore. This is mostly on the back of UPI,” said Sampath Sharma Nariyanuri, fintech analyst, S&P Glob