Reserve Bank of India has published Annual Review (FY 2007) of Payment and Settlement Systems. It’s encouraging to read that RBI is taking some concrete steps to increase the penetration of electronic payments. I specially found Chapter 2 and 4 of this report interesting.

Some interesting observations:

  • Electronic Bill Payment ( for utilities ) has increased 9x in volume and 11x in Amount since FY 2003-07 – It would be interesting to know the reasons behind this increase when other Use Cases hasn’t grown that much. Is it convenience?
  • According to the survey – Cost and Awareness are two significant factors hampering the growth of electronic payments. Interestingly, electronic payment infrastructure doesn’t seem to be an issue, at least in Metros

  • Report makes a good case of widespread use of NEFT for small payments which is still dominated by Cheque – especially because cheques put a cost on the bank and users.

Comments/Feedback/Critical Assessment on the report?


Mukul works with a leading VC/PE firm SAIF Partners in India and focus on early stage investments. Some of the marquee investments of SAIF Partners are in India are MakeMyTrip, HomeShop18, JustDial and One97.
Mukul has earlier worked with Canaan Partners (Venture Capital firm) and worked on closing Canaan investment in Chakpak Media, iYogi and UnitedLex.
Mukul holds a bachelor degree from IIT Kanpur and MBA from Indian School of Business.

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