The Ministry of Electronics and Information Technology (MeitY) has also redistributed individual targets for banks and payments firms for the same period. The Noida based Paytm’s payments bank and private sector lender HDFC Bank have seen their targets increasing the most.
Paytm Payments Bank has to clock close to 1 billion additional transactions at over 5.9 billion from the earlier target of 5 billion, while HDFC Bank’s target has been increased to 3 billion from 2.5 billion earlier. TOI has seen the letter sent by MeitY.
SBI, ICICI Bank and Axis Bank have seen a minor increase in their overall e-transaction targets. Smaller regional banks have also seen a hike in allocation for the current financial year. The Narendra Modi government has been pushing digital payments since its first term and the Unified Payments Interface (UPI) platform has just seen 1 billion monthly transactions on the network.
“Some of the banks reached out to us, expressing the targets given to them should be re-looked at based on their scale of operations. There has been a revision in the breakup of e-transactions among leading platforms as well as taking the total target to 45 billion now as digital payments continue to grow,” an official in Meity said. Two additional sources confirmed the government changing the target distribution after banks reached out to the ministry.
Emails sent to MeitY, ICICI Bank, SBI, Axis Bank and HDFC Bank did not elicit any response, while a Paytm spokesperson declined to comment on the matter. For the financial year ending March 2019, the government had set up a target of 30 billion e-transactions, of which 90-95% were met last year. The digital payments estimate covers cardbased payments, immediate payment service (IMPS), digital wallets, UPI, national automated clearing house (NACH) and Aadhaar-enabled payment system (AePS).