Banking Transactions Confirm Jammu Kashmir’s Eid Market Slump


by Faiqa Masoodi

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SRINAGAR: The grim scenes and the visible slump that the markets across Kashmir displayed for the last few days are reflected by the transactions recorded by the Jammu and Kashmir Bank, the main financial institution controlling two-thirds of the banking business.  On Eid eve, the day witnessed the transfer of Rs 1115.33 crore, which is slightly more than half of the Rs 2102 crore cash transfers on Saturday.

People buy sacrificial animals ahead of Eid-ul-Adha in Srinagar district, Central Kashmir on June 12, 2024. (KL Images: Sajid Raina)
People buy sacrificial animals ahead of Eid-ul-Adha in Srinagar district, Central Kashmir on June 12, 2024. (KL Images: Sajid Raina)

Even though the day’s (ending 6 pm) overall transactions were at 8806135, the transactions involving the transfer of money were only 3873294. The weekend financial transactions were better – 5728305.

Since the banking system counts every transaction twice – the giver and the taker, the actual transfer of funds is only half of the overall transactions. Given the massive financial inclusion in the erstwhile state, almost entire transactions have remained within the banking system.

Sacrificed Eid Market

Muslims have two Eid festivals. Eid-ul-Fitr celebrated after the month-long fasting is comparatively less capital-intensive than Eid ul Azha, the two-and-a-half-day celebration during which animal sacrifices are offered.

Data available with Kashmir Life suggests that cards – both credit and debit cards – recorded a transaction of Rs 170.94 crore on Sunday. While credit cards essentially mean purchase, ATM cards are used for dispensing cash and also making purchases. The figure was better on Saturday when Rs 249.21 crore was transacted.

While mobile banking recorded overall transactions worth Rs 557.79 crore, the UPI transactions were at Rs 326.38 crore, the e-banking saw the transfer of Rs 50.45 crore as the kiosk banking transferred Rs 9.77 crore.

A man shows new Rs 2000 currency after exchanging old Rs 500 and 1000 denominations at Srinagar on Thursday 11 November 2016. KL Image Bilal Bahadur

On Saturday, the last working day before Eid, the JK Bank systems recorded a transfer of Rs 2102.10 crore with mobile banking topping the chart with Rs 1010 crore transfer. Of all the systems of money transfers, mobile banking witnesses transactions five times more than financial transactions because the money-taker, the credit side, checks the incoming bills more often to be sure. Most of the small transactions are taking place through this mode across the country.

While the Eid ul Fitr was slightly better in April as far as banking money transfers are concerned, the 2023 Eid Azha was almost the same. In two days ahead of Eid, almost Rs 3000 crore was transferred by the bank.

Meanwhile, a banking official talking to Kashmir Life anonymously said the bank continues to lead the way in digital banking by recording an unprecedented transaction volume of Rs 11567 crore through its various channels over the past seven days. The bank’s popular mobile app, mPay Delight, has been a standout performer, facilitating transactions worth Rs 5300 Cr, accounting for almost 50 per cent of the total volume, he said.

Calculating the week-long data, the official said the “impressive performance” included UPI transactions reaching Rs 3200 crore. “This marks the second occasion that mPay Delight has achieved a transaction volume of Rs 1000 crore in a single day, the first being just before Eid-ul-Fitr this April,” he said. “The bank’s Business Correspondent (BC) Network managed transactions worth Rs 1000 crore, maintaining uninterrupted service for customers.”

With the largest footprint in Jammu and Kashmir and Ladakh, the Bank has consistently enhanced its digital infrastructure, he said. “The recent integration of mPay Delight with QR Code has further enriched the customer banking experience. These achievements highlight the bank’s dedication to providing hassle-free and reliable digital banking services,” he added.

The figures reported pertain exclusively to digital and alternate channels, excluding conventional cash transactions from bank branches, he added.


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