BANGALORE: Virtual payment that recently stationed its position in India has brought down the effectiveness of Paperless transactions through all resources which includes the internet, ATM, cards and mobile devices.

Due to high intake of technology in the younger generation, it has played out in bring about the fast transition in online or hi-tech methods of fund transfer. Thereby reducing the practices of reaming tons of forms, the new method is also become a threat to the old fashioned bank cheque, reports Indiatimes.

According to RBI data, the figure of paper-based transactions made through cheques can reach a maximum of 85 lakh crore in FY15. On the other hand, paperless transactions like retail electronic transactions which include ECS (electronic clearing system) debits and credits, mobile transactions and others can amount of 92 lakh crore.

While these are mainly retail customer transactions, interbanks and financial market transactions are automatically fixed through channels like RTGS (real time gross settlement) apart from other. Furthermore, merchandise vendors and bill recipients are motivating online transactions by extending cash discounts. Similarly, banks are bringing down paper-based transactions by limiting the supplies of open cheque leaves.

This new form of transation has also made its way to the country's largest lender State Bank of India, which evidently has a greater part of its business settled through paperless transations. ."At SBI, about 69pct of daily transactions happen through alternative channels, including internet, ATM and mobile banking. We see it rising every year with more young people becoming our customers,"said Sunil Srivastava, deputy managing director of State Bank of India.

"A majority of the transactions will turn paperless in the next five-10 years although it cannot be fully paperless in India. Online transactions will gain traction once people use more smartphones with better connectivity,"he added.

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