Unified Payment Interface (UPI) transactions have marked a remarkable ascent from 92 crore transactions in FY 2017-18 to 8,375 crore transactions in FY 2022-23, as revealed in a parliamentary reply. This growth reflects a compound annual growth rate (CAGR) of 147% in terms of volume.
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The value of these transactions echoes a similar trajectory, soaring from ₹1 lakh crore in FY 2017-18 to ₹139 lakh crore in FY 2022-23.
In a recent report, UPI transactions exhibited a 46% year-on-year increase in November. Despite a marginal 1.5% decrease in volume compared to October, settling at 11.24 billion transactions, the value surged by 1.4% to ₹17 lakh crore. These figures, disclosed by NPCI, reflect a remarkable 54% surge in volume and a 46% spike in value compared to the same period last year.
One of the key factors behind UPI's popularity is its user-friendly experience and round-the-clock availability.
The Reserve Bank of India (RBI) has been proactive in introducing a series of measures aimed at boosting the UPI ecosystem's security and fairness.
Here's a look at some of the developments in the UPI ecosystem in 2023:
Increase in UPI for payments made at hospitals and educational institutions
The central bank increased the limit on money transferred through UPI — i.e. payment apps like Paytm, Google Pay, PhonePe as well as similar services provided by the banks — to ₹5 lakh per day.
This is applicable to payments made at hospitals and educational institutions. The change was announced by the RBI Governor Shaktikanta Das after the latest monetary policy review by the Indian central bank.
Instant credit via UPI
Another groundbreaking addition in 2023 was the 'instant credit via UPI' feature. This offering allows individuals to access pre-approved credit lines from their banks through UPI.
Users can quickly and easily avail credit facilities by linking their UPI accounts to scheduled commercial banks.
UPI Lite X for offline payments
UPI Lite X is designed to bring digital payments to even the most remote locations. It enables users to send and receive money through UPI without needing an internet connection.
UPI Tap & Pay
UPI Tap & Pay introduced near field communication (NFC)-based payments. Users can make payments simply by tapping their devices on NFC-enabled QR codes at merchant locations.
Hello! UPI – conversational payments
Hello! UPI represents a major leap in user experience. This feature enables voice-enabled UPI payments through UPI apps, telecom calls, and IoT devices.
Users can perform transactions in Hindi, English, and soon in multiple regional languages by giving voice commands and confirming with a UPI PIN. It's a step towards making digital payments more accessible and user-friendly.
2024 outlook
Looking ahead to 2024, the outlook for UPI appears promising, poised for continued growth and innovation.
The ongoing enhancements and regulatory measures position UPI as a transformative force, reshaping India's financial landscape and driving greater financial inclusion and accessibility for all, experts say.
(Edited by : Shoma Bhattacharjee)
First Published: Dec 29, 2023 5:21 PM IST
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