What is e-Money in India?
What is e-Money in India?,
Has Demonetization given it a much-needed push toward a cashless economy?
e-Money is prepaid value stored electronically, which represents the liability of the e-money issuer (a bank, an e-money institution, or any other entity authorized or allowed to issue e-money in the local jurisdiction) and which is denominated in a currency backed by an authority. In India, eMoney is PPIs issued as Wallets and Cards.
Post-demonetization in November 2016, appears to be a game-changer for e-Money, as people switched to electronic modes of payments resulting in a year-on-year growth of 162.5% in the year 2016.
While medium to large-value transactions continue to be made through digital banking channels and cheques, the low-value day-to-day transactions shifted to e-Money.
The trend continued in succeeding years, viz., an increase of 76%, 33%, and 15% in volume in FYs 2017-18 and 2018-19 and 2019-20 respectively, showing a perceptible shift towards e-Money.
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