Affluent Indians Conducting Over 434 Peer-to-Peer Banking Transactions Each Year
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New Delhi, Jan 7 (NationPress) The financial landscape among the wealthy class in the nation is witnessing unprecedented growth, with the median individual managing over 434 peer-to-peer banking transactions annually and experiencing a surge in the flows of earning, investing, and spending, as highlighted in a report released on Tuesday.
This significant uptick in financial intricacies has catalyzed the extensive adoption of digital personal finance management tools over the last year, according to findings from CRED Money, which are utilized by over 1 million Indians.
The report reveals that 42 percent of individuals receive dividend payouts (averaging 10 times annually), showcasing a sophisticated approach to generating passive income.
In terms of transactions, the analysis shows 116 incoming peer-to-peer transfers per year (valued at Rs 7,82,838), contrasted with 318 outgoing transactions (amounting to Rs 6,93,349 annually), indicating a substantial departure from conventional salary-based income trends.
“The median user is adopting a more proactive strategy in wealth accumulation, with 71 percent actively engaging in investments, averaging 28 times a year,” the report states.
This rapid transaction rate from bank accounts is propelled by the embrace of digital payment platforms like UPI.
The affluent class in India also emerges as strong proponents of diverse payment methods, as evidenced by the high volume and value of UPI transactions conducted by credit card users.
According to the report, the digital public infrastructure not only enhances transaction volumes through UPI but also empowers the wealthy to leverage it effectively via the account aggregator framework.
The median user records 33 shopping debits, 16 health and wellness debits, 38 food and drink debits, and 25 transportation debits annually from their bank accounts.
Looking ahead to 2024, UPI transaction volumes surged nearly 46 percent to 172 billion transactions, compared to 118 billion in 2023.
In terms of value, UPI transactions increased by 35 percent to nearly Rs 247 lakh crore last year, up from Rs 183 lakh crore in 2023, as reported by NPCI data.
