The Unified Payments Interface (UPI) in India has witnessed an extraordinary surge, achieving a record-breaking 8,572 crore transactions during the current financial year up to 11th December 2023. The growth trajectory of UPI has been phenomenal, escalating from 92 crore transactions in FY 2017-18 to an astounding 8,375 crore transactions in FY 2022-23, reflecting a Compound Annual Growth Rate (CAGR) of 147% in terms of volume.
Notably, the value of UPI transactions has exhibited a similar upward trend, soaring from ₹1 lakh crore in FY 2017-18 to ₹139 lakh crore in FY 2022-23, at a remarkable CAGR of 168%. UPI has emerged as the driving force behind the overall expansion of digital payment transactions in the country, contributing 62% to the digital payment landscape in FY 2022-23.
The Reserve Bank of India (RBI), in its efforts to foster a digital payment ecosystem, has undertaken various initiatives to encourage adoption and ensure the safety and convenience of customers. Key initiatives include an incentive scheme for promoting RuPay Debit cards and low-value BHIM UPI transactions, advisories to enhance payment acceptance infrastructure, and the allocation and monitoring of digital payment transaction targets to Public and Private Sector Banks.
The Government’s Pradhan Mantri Gramin Digital Saksharta Abhiyaan (PMGDISHA) plays a pivotal role in enhancing digital literacy in rural India, while ongoing promotion activities with digital payment stakeholders and Law Enforcement Agencies contribute to creating a secure digital payment environment.
In tandem with these efforts, the RBI has implemented Electronic Banking Awareness and Training (e-BAAT) programmes nationwide, emphasizing awareness about Digital Payment Products, Frauds and Risk Mitigation, and grievance redressal. Additionally, campaigns such as Digital Payments Awareness Week and Mission ‘Har Payment Digital’ aim to make every individual in India aware of digital payment options.
The recent permission granted by the Reserve Bank of India to link RuPay credit cards to UPI marks a significant stride in enhancing customer convenience. This linkage eliminates the need to carry physical plastic cards for UPI transactions and enables customers to use credit cards seamlessly, even at small merchant outlets with QR codes.
The RBI’s ’75 Digital Villages’ programme, launched in observance of 75 years of Independence, along with multimedia awareness campaigns under the banner of ‘RBI Says’ or ‘RBI Kehta Hai,’ further reinforces the commitment to customer safety, security, and convenience in the digital payment space.
