New Delhi, June 5 (KNN) India is required to take further efforts to bring down the volume of paper clearing and increase acceptance infrastructure to enhance digital payments, according to the Reserve Bank of India’s (RBI) report on Benchmarking India’s Payment Systems.

The study found that India has a strong regulatory system and robust large value and retail payment systems which have contributed to the rapid growth in the volume of transactions in these payment systems.

There has been substantial growth in e-payments by Government and also in digital infrastructure in terms of mobile networks, it added.

The study revealed that India is a leader in ensuring regulation of cost of payment systems.

India ranks in the middle with regard to the amount of cash in active circulation relative to the gross domestic product (GDP), according to the study.

In 2012, India had high cash in circulation at 11.59% of GDP with only Japan and Hong Kong having more. However, this number fell to 8.7% post demonetization in 2016, before rising again to 10.7% in 2017.

India ranked moderate in terms of volume and growth of payment transactions, which saw a CAGR of 40% between 2012 and 2017. India, however, ranked low in terms of rate in decline of cheques, share of card payments in the payment system and digital payment of utility bills.