RapiPay Fintech Pvt Ltd based in New Delhi has seen a cash withdrawal increase of almost 50 per cent in the last two months and many parts of rural India are still seeking money for emergency and basic services.
The contribution of cash withdrawals to total business has increased to 47 percent so far in May this year (to date) from 31 percent in March. The average ticket size for Aadhaar-enabled payment system (AePS) transactions rose to 2,905 in in May from 2,500 March in March, according to RapiPay Fintech internal data.
The average size of card withdrawals at micro-ATMs (M-ATM) also increased to 3,970 (for the reporting month compared to the previous 3,636 in in March.
“Although people have started using digital payment methods, the second wave of the pandemic has caused some uncertainty, because people prefer to keep cash in the event of a crisis. People withdraw more cash from neighboring stores or bank correspondents to pay for emergency and basic services, ”said RapiPay Fintech CEO and CEO Yogendra Kashyap.
“Because of the locks, people cannot travel to ATMs or banks in rural areas, and withdrawing money generally meets current cash needs for medicines and doctors’ fees. “Citizens are also withdrawing payments received under the national guaranteed employment system in the village of Mahatma Gandhi (MGNREGS) and Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), which also adds to the withdrawals,” he added.
About 40 million people applied for jobs under MGNREGS in April, compared to 36 million in March, while about .20 20,000 crores were allocated to almost 9.5 crore farmers under the PM-KISAN scheme.
For May, Meghalaya took first place in the AEPS rankings with an average ticket size of 7,810 JPY versus 6,313 JPY in March, followed by Nagaland 5,174 (3,790 JPY in March), Goa 5,290 JPY (1,433 JPY), Assam 3,950 JPY (3,600 JPY). ) and Kerala ₹ 3,706 (₹ 3,200). At the front of M-ATMs, Jammu & Kashmir are at the top of the list with an average withdrawal of 7,235 JPY (3,291 JPY in March), followed by Manipur 5,019 JPY (5,000 JPY), Nagaland 4,950 JPY (4,600 JPY), Kerala 5,190 JPY (₹ 4,169) and Arunachal Pradesh ₹ 4,602 (₹ 4,600).
Across India, the transaction value of AePS has risen 166 per cent in the last six months.