Money & Banking

Banks exceed digital transaction target set for 2019-20

Surabhi Mumbai | Updated on July 09, 2020 Published on July 09, 2020

ICICI Bank tops MeitY scorecard, HDFC Bank comes second

As many as 17 banks received an overall “good” rating for their performance on digital transactions in 2019-20, with private sector lender ICICI Bank topping the list of 56 banks and closed wallets that are scored by the government.

ICICI Bank, with an overall score of 83, surpassed the target given to it at 11.58 per cent in 2019-20, which include transactions made through UPI, debit cards, net banking and PPIs.

In the scorecard prepared by the Ministry of Electronics and Information Technology (MeitY), HDFC Bank came second and had met 10.95 per cent of the target for 2019-20 while YES Bank was third.

The scorecard, which was seen by BusinessLine, revealed that amongst public sector lenders, Bank of Maharashtra came in at the sixth position, the merged Bank of Baroda was at ninth place and State Bank of India was 10th in 2019-20.

Fino Payments Bank, at the fifth spot, was the only payments bank in the top 10. Paytm Payments Bank was ranked 17th with an overall rating of good, but it achieved only 82.95 per cent of the given target.

Transaction value

Cumulatively, the 56 banks achieved ₹4,572-crore digital transactions in 2019-20 as against the target of ₹4,019 crore. This was also a 45.88 per cent growth in digital transactions compared with 2018-19.

Significantly, 2019-20 was also the first year when the target for digital transactions was exceeded by such a wide margin.

In 2017-18, just ₹2,070.39 crore was achieved as against the target of ₹2,500 crore digital transactions assigned by the Ministry to 28 public sector banks and private banks. This improved to ₹3,133.58 crore in 2018-19 as against an overall target of ₹3,013 crore in 2018-19.

To boost digital payments, the Ministry sets an overall target for digital transactions with separate sub-targets for each bank. It tracks the performance of the banks on a monthly as well as annual basis. The performance is monitored based on criteria such as the percentage of digital transactions achieved, merchant deployment and active merchants in an urban area.

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on July 09, 2020
This article is closed for comments.
Please Email the Editor