“UPI Transactions Surge to ₹8,375 Crores, Fueling India’s Digital Payment Revolution”
The Unified Payments Interface (UPI) has emerged as the cornerstone of India’s digital payment landscape, witnessing an unprecedented surge in transactions, according to a statement from the Union Finance Ministry. In a written response to Lok Sabha, the ministry highlighted the staggering growth of UPI, attributing it to the significant decline in the growth rate of banknotes in circulation.
The Unified Payments Interface (UPI) has emerged as the cornerstone of India’s digital payment landscape, witnessing an unprecedented surge in transactions, according to a statement from the Union Finance Ministry. In a written response to Lok Sabha, the ministry highlighted the staggering growth of UPI, attributing it to the significant decline in the growth rate of banknotes in circulation.
Minister of State for Finance, Bhagwat K Karad, revealed that UPI transactions have experienced an exponential rise, escalating from ₹92 crore in FY 2017-18 to a monumental ₹8,375 crore in FY 2022-23. This remarkable growth represents a Compound Annual Growth Rate (CAGR) of 147% in transaction volume. Moreover, the value of UPI transactions surged from ₹1 lakh crore to ₹139 lakh crore during the same period, boasting a CAGR of 168%.
In the ongoing fiscal year until December 11, UPI has already recorded a staggering 8,572 crore transactions, further solidifying its status as the primary driving force behind the expansion of digital payment transactions. Notably, UPI constituted a significant 62% of all such transactions in FY 2022-23.
This substantial shift towards digital payments has been instrumental in reducing the Year-on-Year growth in the value of banknotes in circulation, dropping from 9.9% in FY 2021-22 to 7.8% in FY 2022-23.
Launched in 2016 by the National Payments Corporation of India (NPCI), UPI operates as an instant payment system regulated by the Reserve Bank of India (RBI). Leveraging the immediate payment service infrastructure, UPI enables instantaneous fund transfers between the bank accounts of any two parties.
In a recent development, the RBI approved the integration of RuPay credit cards with UPI, eliminating the necessity to carry physical cards while using RuPay credit cards through UPI QR codes. This innovation enables consumers to utilize credit cards, even at smaller merchant outlets equipped with QR codes, simplifying transactions and enhancing convenience.
The exponential growth of UPI transactions underscores a monumental shift in India’s payment landscape, ushering in an era of seamless and efficient digital transactions while significantly reducing reliance on physical currency. This surge in digital payments reaffirms UPI’s pivotal role in driving the nation towards a cashless economy and reinforces its position as a transformative force in the financial domain.
Sources By Agencies
About The Author
This was beautiful Admin. Thank you for your reflections.