by Faiqa Masoodi
SRINAGAR: With Eid-ul-Azha being celebrated on June 7, Jammu and Kashmir Bank has reported a dramatic rise in digital banking activity across its platforms, recording over nine crore transactions valued at Rs 12,149.45 crore between June 1 and June 6 (till 6 PM). The data, shared in a consolidated report with Kashmir Life, reflects a strong shift among the region’s population towards cashless transactions, with customers increasingly relying on mobile apps, UPI, eBanking and other digital interfaces.
Jammu and Kashmir Bank, which holds nearly two-thirds of the financial market share across Jammu and Kashmir, witnessed record-breaking usage of its digital infrastructure in the lead-up to the festival. The Unified Payments Interface (UPI) emerged as the most used channel, with more than 5.76 crore transactions, comprising 3.11 crore financial and 2.68 crore non-financial transactions, amounting to Rs 4,393.08 crore. UPI usage reached its peak on June 5, when the bank recorded 1.11 crore UPI transactions worth Rs 908 crore, the highest for any single day during the period under review.
Mobile banking, through the bank’s Delight and Delight+ applications, also witnessed a sharp rise in activity. Customers conducted 2.91 crore transactions, including 59.80 lakh financial transactions and 2.31 crore non-financial ones, translating into a total of Rs 4,883.22 crore. The usage was especially high on June 5, when the mobile apps handled 58.88 lakh transactions worth Rs 1,040 crore, indicating customers’ preference for app-based convenience while preparing for the festive season.
Although digital channels dominated, traditional banking methods retained their relevance. Automated Teller Machines (ATMs) and debit card usage accounted for 27 lakh transactions, resulting in cash movement of Rs 1,140.23 crore. These transactions were largely concentrated in rural and semi-urban belts where digital access remains comparatively limited, and the demand for physical cash is still high.
The bank’s eBanking services, while limited in transaction volume, played a major role in terms of value. A total of 1.19 lakh transactions were recorded on this platform, with a cumulative transaction value of Rs 1,570.37 crore. Analysts believe this trend suggests heavy usage of eBanking for high-value operations such as corporate payments and large fund transfers, likely timed with salary disbursals and institutional settlements before the Eid break.
Kiosk banking, which caters to less-connected and underserved regions, also showed growth. The bank facilitated 4.89 lakh transactions worth Rs 162.55 crore through these outlets. According to the bank, kiosk transactions included a mix of deposits, withdrawals and balance checks, and are vital for extending financial services to remote communities.
A closer look at the day-wise data reveals a steadily building trend in transaction volumes and values as Eid drew nearer. The bank reported 1.22 crore transactions on June 1, amounting to Rs 1,085.79 crore. This figure rose to 1.46 crore transactions worth Rs 2,235.97 crore on June 2, and remained high at 1.48 crore transactions on June 3, totalling Rs 2,085.50 crore. On June 4, the bank witnessed 1.57 crore transactions worth Rs 2,200.42 crore, followed by the busiest day, June 5, which saw 1.77 crore transactions with a total value of Rs 2,533.66 crore. As of 6 PM on June 6, the numbers were still strong, with 1.48 crore transactions worth Rs 2,008.11 crore.
Banking experts attribute this surge to multiple factors, most notably the festive spending associated with Eid-ul-Fitr. Customers are increasingly opting for digital channels to transfer money, pay utility bills, purchase goods online, and send remittances. The growing comfort with mobile apps and UPI platforms, which offer convenience and speed, has significantly altered the region’s financial behaviour.
“This surge reflects how deeply digital banking has penetrated the daily financial life of people in Jammu and Kashmir,” said a senior financial analyst based in Srinagar. “The performance of UPI and mobile platforms confirms the trust that people now place in digital ecosystems. At the same time, the steady usage of ATMs and kiosks highlights the hybrid nature of financial access in this region.”
While an impressive amount changed hands in the run-up to the Eid, the markets remained deserted and no visible crowds were seen. Even in the Eidgah, which is home to the major sacrificial animal market on Eid, the buyers were quite a few buyers. This indicates that while money changed hands, most of it did not move out of the banking set-up. Jammu and Kashmir is witnessing a massive slump in markets for a varied set of reasons, and people in such situations tend to stay liquid. There is a massive squeeze in expenditure at the government and societal levels.
