7

Research Report
On

Focus areas for improvement of Digital transactions in
Patna Zone

1. Introduction: transaction conducted in November 2018 –
constituting to an 18 percent rise in the volume
The Indian Financial Services space over the of transactions as stated by the National
last couple of years has been transforming itself Payments Corporation of India (NPCI). Backed
constantly and is on the path to significant by numerous global players like Amazon,
growth. With the arrival of various next- Google, Paytm and WhatsApp who have
generation technologies, the Indian FinTech invested heavily in UPI-based platforms, the
sector has been embracing technology and digital payments space in India is likely to grow
innovation with open arms. This backed by manifold to the tune of USD 1 trillion by the year
various regulatory amendments including 2023.
eKYC, e-NACH, India Stack, and API
integration has paved the way for a robust In this backdrop, digital transactions of Patna
digital payment and interoperability system. Zone is analyzed.

It is well known that the Indian FinTech space 2. Objectives:
is governed by multiple entities including the
Reserve Bank of India (RBI), Securities and This analysis has been conducted for
Exchange Board of India (SEBI), Telecom
Regulatory Authority of India (TRAI) and others, Patna Zone comprising six Regions viz.
and it is these regulatory bodies that have taken
the onus to advocate for increasing the digital Patna, Jamshedpur, Muzaffarpur,
transactions in India. As digital transactions
continue to rise, let us look at some factors that Purnea, Bhubaneshwar and
would enable this growth in India.
Sambalpur Region with the following
Unified Payments Interface (UPI)
objectives:-
2017 and early 2018 witnessed a wave of UPI –
a system that allows users to link multiple bank I. To find out Region wise
accounts in a single smartphone app percentage of digital transaction
(like BHIM or Google Pay) and initiate achievement vis-a- vis target
transactions without having to provide
numerous clumsy and time-consuming II. To find out distribution of digital
methods like providing IFSC codes, and transactions achievements vis-à-
account details to initiate every transaction. By vis target among rural, semi-urban,
2019, the recently launched UPI 2.0 – the urban & Metro Branches of
updated version of UPI – will increase UPI- different regions
based transactions significantly.
III. To find out growth of digital
In fact, in December 2018 alone, over 600 transactions.
million UPI transactions worth INR One Lakh
Crore were conducted as compared to the IV. To find out difficulties faced by
close to 525 million transactions valued at Branches in enhancing digital
approx. INR Eighty Two Thousand Crore transactions

Baroda Samhita | Volume 1 V. To suggest steps for increasing
digital transactions of Zone

18

3. Methodology and taken to find out difficulties faced in
Sample: improving digital transactions. Further
on the part of methodology, analysis
The Zone is having a total of 471 were done with help of excel and the
Branches. Out of 471 branches, 159 results are interpreted accordingly.
branches are in rural areas, 175 are in
Semi –urban areas, 99 are in urban 4. Findings of the survey:
areas and 38 are in Metro areas. The
data of for total digital and non-digital I. The first objective was to find out
transaction for all the Branches of the Region wise percentage of digital
Zone were obtained. Therefore sample transaction achievement vis-a- vis
contains all the Branches of the Zone target
and there is no omission with respect to
digital transactions. Further minimum The data for the same is presented in the table
10 branches from all locations were given below:-

Table –I (No. in actual / Amount in Rs. Crore) (Data as of 31.03.2019)

Region wise Digital transaction achieved during Financial Year 2018-19

Region Total Digital Transactions Target Digital Achievement %
achieved Transaction 59.82
86.43
BHUBANESWAR REGION 8715617 14568787 88.86
96.72
JAMSHEDPUR REGION 3823152 4423240 74.58
139.93
MUZAFFARPUR REGION 6307447 7097969 81.02

PATNA REGION 6217346 6427996

PURNEA REGION 3115284 4177319

SAMBALPUR REGION 3682843 2631935
Patna Zone 31861689 39327246

Inference: From the Table-I above, it can be distribution of digital transactions will help to
inferred that the average percentage of digital locate the plausible reasons for low
transaction achieved by the Zone is 81.02%. performance of these two regions.
However only -2- Regions viz. Bhubaneshwar
and Purnea achieved lower than the average The second objective was to find out
transactions of the Zone. Bhubaneshwar region distribution of digital transactions
(59.82%) is far below the Zonal average (81.02 achievements vis-à-vis target among rural,
%) where as Purnea Region (74.58%) is very semi-urban, urban & Metro Branches of
close to average. Rest four Regions are above different regions
Zonal average. The next objective i.e.

Baroda Samhita | Volume 1 19

Table –II Area wise distribution of digital transactions among Regions (No. actual ) (Data as of
31.03.2019)

BHUBANESWAR REGION

Digital

Transactions

Area Achieved Target % achievement Zonal Average
Metro 92.09
Rural 000 68.01
Semi urban 101.36
Urban 3594775 7019785 51.21 72.01
Total 81.02
2079224 1915541 108.55

3041618 5633461 53.99
8715617 14568787 59.82

Inference: From the above table for than the Zonal average. Therefore, the
Bhubaneshwar Region, it can be inferred that branches of rural and urban areas of
there is no metro branches in Bhubaneshwar Bhubaneshwar region are the focus areas
Region and hence 0. Further except branches for improving digital transactions of the
in the semi-urban area, rural and urban Zone.

Branches have contributed significantly lesser

JAMSHEDPUR REGION

Area Digital Transactions Target % achievement Zonal Average
Achieved

Metro 709398 939444 75.51 92.09

Rural 533940 550780 96.94 68.01

Semi urban 1367281 1463124 93.45 101.36

Urban 1212533 1469892 82.49 72.01
Total 3823152 4423240 86.43 81.02

Inference: From the above table for of Bhubaneshwar region. However Semi-urban
Jamshedpur Region, it can be inferred that rural
branches have significant positive contribution Branches and Metro Branches have
in digital transactions i.e. 96.94% against zonal
average of 68.01%. Urban branches have also contributed less than the zonal average.
contributed positively. Here the trend is reverse Therefore focus areas for improving digital
transactions in Jamshedpur Region are
Semi-urban and Metro Branches.

MUZAFFARPUR REGION

Digital Transactions

Area Achieved Target % achievement Zonal Average
0 0.00 92.09
Metro 0 87.14 68.01
2099788 89.76 101.36
Rural 1829657 2777834 89.38 72.01
2220347 88.86 81.02
Semi urban 2493282 7097969

Urban 1984508
Total 6307447

Inference: From the above table for branches in semi-urban areas of
Muzaffarpur Region, it can be inferred that Muzaffarpur region are the focus areas for
there is no metro branches in Bhubaneshwar improving digital transactions of the Zone.
Region and hence 0. Further except branches
in the rural and urban Branches, Semi-urban
branches have contributed significantly lesser
than the Zonal average. Therefore, the

Baroda Samhita | Volume 1 20

PATNA REGION

Area Digital Target % achievement Zonal Average
Metro Transactions 2561873 98.16 92.09
Rural 562975 97.43 68.01
Semi urban Achieved 1507758 101.30 101.36
Urban 1795390 90.60 72.01
Total 2514850 6427996 96.72 81.02

548517

1527392

1626587
6217346

Inference: From the above table for Patna is to be maintained in the Region. Patna Region
Region, it can be inferred that all the Branches
irrespective of locations have positive have contributed significantly in Zonal digital
significant contribution. The same momentum transaction. There are no areas of Patna
Region which needs special attention.

PURNEA REGION

Area Digital Target % achievement Zonal Average
Metro Transactions 0 0.00 92.09
Rural 74.45 68.01
Semi urban Achieved 1097980 72.03 101.36
Urban 1866963 78.61 72.01
Total 0 1212376 74.58 81.02
4177319
817438

1344751

953095
3115284

Inference : From the above table for Purnea contributed significantly lesser than the Zonal
Region, it can be inferred that there is no metro average. Therefore, the branches in semi-
branches in Purnea Region and hence 0. urban areas of Purnea region are the focus
Further except branches in the rural and urban areas for improving digital transactions of
Branches, Semi-urban branches have the Zone.

SAMBALPUR REGION

Digital Transactions

Area Achieved Target % achievement Zonal Average
Metro 92.09
Rural 0 0 0.00 68.01
Semi urban 101.36
Urban 713114 489200 145.77 72.01
Total 81.02
2639226 1766727 149.39

330503 376008 87.90
3682843 2631935 139.93

Inference : From the above table for Region have contributed significantly in Zonal
Sambalpur Region, it can be inferred that there digital transaction. There are no areas of
is no metro branches in Purnea Region and Sambalpur Region which needs special
hence 0. Further it can be inferred that all the attention.
Branches irrespective of locations have positive
significant contribution. The same momentum The third objective was to find out growth of
is to be maintained in the Region. Sambalpur digital transactions.

Baroda Samhita | Volume 1 21

The same is given as under:- Total Digital Total Digital % growth % achievement
Transactions Transactions
Region as of 31.03.19 as of 31.12.18 36.56 59.82
59.23 86.43
BHUBANESWAR REGION 8715617 6382417 49.85 88.86
JAMSHEDPUR REGION 3823152 2401045 69.73 96.72
MUZAFFARPUR REGION 68.62 74.58
PATNA REGION 6307447 4209089 34.95 139.93
PURNEA REGION 6217346 3663086 50.06 81.02
SAMBALPUR REGION
Total 3115284 1847518

3682843 2729083
31861689 21232238

Inference: It can be inferred from the table that taken efforts in the last quarter to meet the
Sambalpur region has exceeded the target of target. Therefore Zone has to focus more on
digital transaction by almost 40% whereas Bhubaneshwar Region for improving its
growth in the last quarter is only 35% i.e. this digital transaction.
region has consistently focused on digital
transaction that resulted in extra-ordinary The fourth objective was to find out the
performance. Further Bhuvneshwar region was difficulties faced by branches while
sluggish throughout and it did not take much promoting the Digital Transaction. The
effort even in last quarter. All other regions have same is given as under:-

Difficulties faced while promoting Digital else has access to their bank account and this
Transaction:- is a deal breaker for many. People in this
category may have limited experience with the
i) Customers are unfamiliar with Digital online world through lack of exposure and
Transaction- Customers are used to go to Bank understanding of how it works.
Branch to perform their routine financial
transaction. In spite of they have option to iii) Currency dominated economy: Indian
perform their transaction through various digital economy is a currency dominated economy. In
mode, they prefer to go to their base branch. India cash in circulation amounts to around
The primary reason behind it is that many 10.48% of GDP. More than 80% of transaction
customers are not very much familiar or takes place in cash. Large no. of
comfortable with digital modes available to unorganized/informal sector and workers prefer
them. Although customers are using Smart cash based transaction. They don`t have
phone but a large no. of customers restricted required digital and fintech literacy.
themselves to use their mobile for calls/SMS &
some other social media app. They need proper iv) Poor Connectivity in rural area: To
guidance and handholding to use their mobile perform any transaction digitally, internet
to perform financial transaction. Branch should connection is pre requisite. In rural areas poor
also provide handholding to customers to use connectivity is a major challenge to promote
Digital modes. This will boost customer`s digital transaction. In addition to this, a lower
confidence and improve digital transaction. literacy level in poor and rural parts of country,
make it problematic to push the use of digital
ii) Lack of trust- Second major issue in the mode on a wider scale.
growth of digital transaction is that there is still
a lack of trust for digital payments. Customer v) Difficulties in change/update in Mobile
don't yet feel safe using digital modes as they Number: Recently bank has revised the
don't trust the Internet and the perceived procedure to change/update of Mobile number
security risks. The perception that someone in Finacle. As per revised procedure if the

Baroda Samhita | Volume 1 22

customer doesn`t have his old mobile number safely use of digital modes and about Do`s &
or want to update his number first time request Don`t of digital banking in rural & semi urban
has been sent to Regional office and after area. This will boost customer confidence in
verification from Regional office it takes 48 Digital transaction.
hours to change/update the mobile number of
the customer. As per revised process there is 5. Conclusions
delayed in change/update in mobile number of
the customer. So customers are unable to The various conclusions drawn from the study
receive OTP for setting/generation of PIN. are given as under:-

The fifth and last objective was to suggest 1. Contribution of Bhuvneshwar & Purnea
steps for increasing digital transactions of region in digital transaction is below the
Zone zonal average and need to be focused.

Patna zone is focusing on improving digital 2. Rural & Urban branches of Bhubaneshwar
transaction and has done well in promotion of region are contributing less in improving
digital transaction still there are some areas digital transactions of the Zone.
which need to address to further improve it.
These are- 3. Focus areas for improving digital
transactions in Jamshedpur Region are
Staff not using digital modes: Zone should Semi-urban and Metro Branches.
ensure that all the staff posted in zone
invariably use digital mode for their 4. Average Digital transaction in semi-urban
transactions. Although majority of staff are Branches of Muzaffarpur region is below
using digital modes but stall there are branches the Zonal average and need to be focused.
in zone where staff uses physical mode rather
than digital mode. Moreover some staff have 5. Performance of Patna region in Digital
not registered themselves for Mobile Banking, transaction is at par or above the zonal
Internet banking & UPI. If staff will not use these average.
digital modes he will not be able to handhold the
customers and answer their issue. 6. Semi-urban Branches of Purnea region
are the focus areas for improving digital
Handholding of customers: To improve digital transactions of the Zone.
transaction, zone/region should identify staff in
each branch as Digital Champion/Sahayak who 7. Performance of Sambalpur region in
will handhold the customer and keep a liaison Digital transaction is at par or above the
with Regional digital manager & zonal digital zonal average.
manager.
8. Average hits in ATMs are not increasing
Organization of Digital Chaupal/Mela: To due to ATM remain out of order or ATMs
improve digital transaction, zone/region should availability is low.
organize Digital chaupal/Mela in rural & semi
urban area to popularize our digital initiative 9. In Rural & Semi urban area Business
among people. Correspondent/VLE have set up their CSP
(Customer Service Point) away from the
Sensitize customer about security risk: village, for which they have been
Branches should sensitize their customers for appointed.

10.Large no. of Debit Cards are lying in the
Branches especially of FI a/c which is a
security concern as well as hindrance in
improving Digital Transaction. Out of total
issued debit cards only 38% card are
actively used

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6. Impact of the study

1. Within Zone, Region wise focused area have been identified now region and zone should
emphasis in the area mentioned below-

S.N. Name of the Region Focused Area
1. Bhuvneshwar Rural & Urban Branches
2. Jamshedpur Semi Urban & Metro Branches
3. Muzaffarpur Semi Urban Branches
4. Purnea Semi Urban Branches

2. Growth in digital transaction in 6. Branch/Region should ensure that each
Bhuvneshwar and Purnea Regain is not BC/VLE set up their customer service
at par with zone therefore zone to closely point (CSP) in the village they are
monitor these two regions for Digital appointed for.
Transaction.
7. Process of change/update of Mobile
3. Necessary training should be provided to number should be simplified.
Digital champions.
8. Branches/Regions should organize
4. Branch/Region should endeavor to Digital Chaupal/Mela in Rural and Semi
urban area.
distribute lying Debit card in the branch
with the help of BC/VLE to improve 9. Branch/Region should educate
percentage of active cards. customers about safe using of Digital
5. Branch/Region should ensure ATM Mode.
availability to customer to improve ATM
hits.

7. References : 2. Various Circulars of our Bank from
Digital Banking Department.
1. Data received from Zone regarding
Digital Transaction. 3. Interactions with various officials of
Zone, Region and Branches.

About the Author –

Rakesh Kumar is presently Chief Manager & Learning Head of Baroda Academy
Jamshedpur.

He is having banking experience of more than 14 years. He has worked in different
zones viz. Lucknow, Chennai, Kolkata and Patna. He has worked in the areas of
Agriculture, Retail and MSME. He has received 2nd prize in Case Study
Competition conducted by NIBM and also received few accolades in interbank
Rajbhasha essay competitions.

He can be reached at [email protected]

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