be counted as valid ATM transactions for the customer. Consequently, no charges therefor shall be levied; (2) non-cash withdrawal
transactions (such as balance enquiry, check book request, payment of taxes, funds transfer, etc.), which constitute ‘on-us” transactions (i.e,
when a card is used at an ATM of the bank which has issued the card) shall also not be part of the number of free ATM transactions.

The following table sets forth transactions based on value:
(@ in billions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Parameters Financial Year
2019 2020 2021
RTGS 1,356,881.9 1,311,564.8 1,055,998.5
NEFT 227,936.1 229,455.8 251,309.1
Paper Clearing 82,460.7 78,248.2 56,271.9
UPI 8,769.7 21,3173 41,036.6
IMPS 15,902.6 23,375.4 29,415.0
Cash Withdrawal at ATM* 33,153.2 34,241.7 28,956.6
Usage at POS 11,968.9 14,328.4 12,886.6
Prepaid 2,133.2 2,155.6 1,977.0
BHIM Aadhaar Pay 8.2 13.0 25.8
Total 1,739,214.4 1,714,700.1 1,477,877.0

 

 

 

Source: India ATM Market Outlook to 2026, Ken Research, August 2021.
Usage at POS include debit and credit card transactions.

Direct Benefit Transfer

Direct Benefit Transfer (“DBT”) was a high-priority focus area for the Gol in the financial year 2021 despite the
Gol’s main focus being the handling of the COVID-19 pandemic. Increasing use of DBT has led to an increase
in the number of beneficiaries to 970 million as of March 31, 2021, from 312 million as of March 31, 2016. The
value of fund transfers also increased to 5,525.2 billion during financial year 2021 from 2619.4 billion during
financial year 2016 due to increasing use of Aadhar cards for proof of identity, an increase in Jan Dhan accounts
in India and increasing growth of DBT schemes. In India, schemes under DBT increased from 59 as of March
31, 2016, to 381 as of March 31, 2021.

DBT is expected to result in more people receiving benefits directly into their accounts. Money circulation is

expected to increase which can further lead to significant growth in the GDP and is further expected to increase
cash withdrawal from ATMs.

The following chart sets forth fund transfers from the financial year 2016 to the financial year 2021.

 

6,000.0 5,525.2
5,000.0
4,000.0 3,816.3
3 3,297.9
Z 3,000.0
»
2,000.0 1,908.7
1,000.0 619.4 746.8
oo -
FY'2016 FY2017 FY'2018 FY'2019 FY'2020 FY'2021

Source: India ATM Market Outlook to 2026, Ken Research, August 2021.
Historical Trend of Cash Circulation in India during the Financial Years 2016 to 2021

Despite the growth of cashless transactions, people in India rely heavily on cash transactions in their day-to-day
life. However, transactions made through digital applications have grown due to shortages of cash flow
observed in the Indian economy. Currency in circulation as a percentage of GDP increased from 10.7% during
the financial year 2018 to 14.5% during the financial year 2021. The higher cash in circulation was primarily on

117
