The above graph represents the total value of cheque transactions in India by month. Cheque Truncation System (also known as Image-based Clearing System (ICS)) is the process of stopping the physical movement of cheques, issued by a drawer to the drawee branch. Instead, an electronic image of the cheque is being sent the drawee branch, along with some relevant information such as the MICR fields, date of presentation, etc. In July 2019, a total of 93.48 million cheques, valued at Rs 6,852.24 billion, were cleared through the Cheque Truncation System (CTS) in India.
|Source||Reserve Bank of India (RBI)|
|Last Updated||19 September 2019|
|Duration||April 2011 – July 2019|
That’s nearly 8.2% month-over-month increase from June 2019 when Rs 6,330.18 billion worth of cheques payments were cleared by banks.
Interestingly, in March 2017, the total value of cheque transactions cleared through CTS reached an all-time high of Rs 8,062.77 billion.
However, RBI witnessed a notable decline in the volume and value of Cheque transactions through CTS in the month of April 2017. Only 95.26 million transactions worth Rs 6,990.65 billion were carried out through cheques in April month.
In March 2018, the total value of the transactions carried out through Cheque Truncation System stood at to Rs 7,682.16 billion, compared to Rs 6,453.56 billion in the previous month.
Digital Transactions In India: Additional Information
The internet revolution has resulted in exploded adoption of digital methods of transactions worldwide. The users of Credit & Debit cards, mobile and internet nowadays are far more aware and digitally empowered with making financial transactions. In the last few years, however, digital transactions have branched out into multiple types of financial transactions.
Started with the use of Credit and Debit cards at POS in large retail stores, digital transactions industry has come a long way. The introduction of mobile wallets and UPI have transformed the whole digital transaction industry in India. RTGS (Real Time Gross Settlement), NEFT (National Electronic Fund Transfer), CTS (Cheque Truncation System), IMPS (Immediate Payment Service), NACH (National Automated Clearing House), UPI (Unified Payments Interface) and PPI (Prepaid Payment Instruments) are the main type of financial transactions that fall under the Digital transaction category.
Digital transactions save time and money, resulting in a better bottom line. Customer experiences are also enhanced (think of the convenience of eSigning versus having to print a contract, sign it, and then return it by mail or fax). And digital transactions improve tracking capabilities, which helps reduce errors.
The exploded adoption of smartphones, mobile apps and mobile internet has helped Digital transaction industry to grow at an unprecedented rate. With more than 500 million smartphone users, India is one of the largest countries by the number of digital transactions that are recorded every month.
The above graph is a part of Dazeinfo GraphFarm – the most trusted source of hundreds of thousands of market graphs. Our team of researchers mines millions of data points every month to bring the most updated and validated set of data points representing the comprehensive view in a graphical format. From mobile to e-commerce, from Retail to healthcare, from startups to SMEs we have carefully designed thousands of graphs for those who value and understand the importance of data visualisation.