Most banks failed to meet ₹2,500-cr digital transaction target for 2017-18

Priyanka Pani Updated - June 07, 2018 at 11:44 PM.

Only 8 private banks achieve ‘good’ rating

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The vast majority of banks in India have failed to meet digital transaction targets set by the Centre for 2017-18.

The Ministry of Electronics and Information Technology (MeitY) had assigned a target of ₹2,500-crore digital payment transactions to about 38 public and private sector banks for financial year 2017-18.

According to a scorecard, which MeitY has sent to all the 38 banks and seen by

BusinessLine , only eight private sector banks, including HDFC Bank, Ratnakar Bank, Kotak Mahindra, Bandhan Bank and YES Bank, achieved a ‘good’ rating.

Nine banks, including SBI, IDBI and Central Bank of India, have been given an ‘average’ score, while the others have been marked ‘unsatisfactory’.

According to a report, by the end of March 2018 digital initiatives such as digital wallet payments, electronic toll payments, Aadhaar-based and bank-to-bank electronic money transfers accounted for about about ₹2,054 crore worth of transactions.

New entrants lead

Interestingly, new banks such as Bandhan Bank and Ratnakar Bank topped in achieving digital transactions. IndusInd Bank got the highest marks in terms of BHIM-based PoS deployment.

Banking experts say that private banks have always been prompt in implementing digital initiatives to improve their customer base. Besides, they are strong in urban areas, where smartphone and internet penetration is greater, with more awareness about mobile wallets, UPI and other modes of electronic transfers.

The experts pointed out that the customers of public sector banks still rely on withdrawal of money through cheques.

The waning effect of demonetisation may also have come in the way of achieving the ₹2,500 crore target.

MeitY has set a similar target for fiscal year 2019.

Published on June 7, 2018 17:05