Northeastern states and Jammu & Kashmir are leading the way in the adoption of Aadhaar-linked financial services, according to a report by financial-technology company PayNearby.
The report highlights significant growth in Aadhaar-enabled payment systems (AEPS) and other financial transactions across these regions.
High Growth in Aadhaar-Enabled Transactions
The report, titled “Aatmanirbhar Bharat – Digital Empowerment,” indicates that Meghalaya has experienced an astounding 1,000 percent increase in AEPS transaction value and a 712 percent rise in the number of transactions.
Nagaland and Assam also saw substantial growth in AEPS transactions.
Retail shops in Jammu & Kashmir witnessed a 134 percent increase in transaction value and an 89 percent increase in transaction volume for AEPS in the fiscal year 2023-24.
This data, collected from over 1.2 million retail outlets across India, underscores the significant impact of Aadhaar-linked services.
Growth in Micro-ATM Transactions
Mizoram and Meghalaya saw notable increases in micro-ATM transaction values by 55 percent and 43 percent, respectively, with transaction volumes growing by 33 percent and 43 percent.
Jammu & Kashmir also experienced a 31 percent increase in both the value and volume of micro-ATM transactions at retail stores.
Anand Kumar Bajaj, Founder, Managing Director, and CEO of PayNearby, emphasized the crucial role retail stores play in providing banking services, especially in areas where traditional bank branches are less accessible.
Surge in Digital Transactions and UPI QR Code Usage
The report also highlights a significant rise in transactions through UPI QR codes at retail stores, growing at a rate of 84 percent.
Assam ranked first in overall financial and digital transactions, followed by Madhya Pradesh, Gujarat, Maharashtra, and Rajasthan.
Additionally, Punjab saw a 29 percent increase in MSME loan disbursements through retail stores, while Telangana and Uttar Pradesh recorded the highest growth in e-commerce transactions.
This surge in Aadhaar-linked financial services demonstrates the ongoing digital transformation and financial inclusion efforts across various regions in India, particularly in the Northeastern states and Jammu & Kashmir.
