Navratri, GST cuts spark festive shopping boom: Digital transactions jump to Rs 11 lakh crore; see near 10-fold surge – The Times of India

India witnessed an unprecedented rise in digital transactions as the Navratri festival season coincided with the biggest GST cuts on high-value consumer items. According to RBI data, total electronic payments soared to Rs 11.31 lakh crore on Monday, nearly 10 times the Rs 1.18 lakh crore recorded the previous day.The momentum continued on Tuesday, with digital payments totaling Rs 11.19 lakh crore, signaling optimism for the festive season. Demand is expected to remain strong throughout Navratri and leading up to Diwali.The recent GST reforms, which halved the number of tax slabs and reduced levies on discretionary items such as cars, motorcycles, and home appliances, have significantly boosted consumer spending. Automotive companies are expected to be the biggest beneficiaries, with levies on many cars reduced to 18% from 28%, prompting increased dealer and consumer bookings.“The conclusion of Shraddh period and the onset of Navratri, coupled with recent GST reductions and deep ecommerce discounts, have significantly lifted consumer sentiment,” said Anand Kumar Bajaj, founder and CEO of PayNearby.“We’re seeing a sharp uptick in spending, particularly on apparel and home appliances, signalling strong festive demand and renewed economic momentum,” he added, a quoted by ET.The surge was particularly noticeable on digital platforms such as UPI, credit cards, debit cards, NEFT, IMPS, and RTGS. During Flipkart and Amazon’s annual 10-day festival sales, credit card spending on ecommerce platforms rose six-fold to Rs 10,411 crore, while debit card spending tripled to Rs 814 crore, highlighting strong demand for high-value purchases.“Following the recent GST relief and the positive market sentiment around it, we’ve seen a noticeable surge in customer engagement and spending. In just the past couple of days, demand has grown by nearly 20%,” said Bikram Yadav, head of credit cards at RBL Bank.“With low inflation, GST relief and upbeat consumer sentiment, we anticipate strong festive spending across categories such as ecommerce, travel and electronics,” added Bikram.Among all digital channels, the largest value of transactions occurred via RTGS, the preferred method for high-value payments, which jumped to Rs 8.14 lakh crore from Rs 17,166 crore a day earlier. Large purchases such as cars, typically booked by dealers and end customers, are often routed through RTGS, reported ET.