The Reserve Bank of India (RBI) Governor addressed a distinguished gathering at the Digital Payments Awareness Week celebrations, highlighting the remarkable growth and security measures in India’s digital payments landscape.
In his speech, the Governor expressed pride in India’s journey in developing one of the most advanced payment systems globally, crediting the nation’s embrace of diverse payment systems. He noted that retail digital payments in India had soared from 162 crore transactions in FY2012-13 to a staggering 14,726 crore transactions in 2023-24, marking a 90-fold increase over 12 years. India now accounts for nearly 46% of the world’s digital transactions.
A major focus of the Governor’s address was the success story of the Unified Payments Interface (UPI), lauded as a game-changer in fast payment systems. UPI’s share in digital payments has surged to nearly 80% in 2023, with transactions skyrocketing from 43 crore in CY-2017 to a staggering 11,761 crore in CY-2023. The Governor highlighted UPI’s evolution to include advanced functionalities such as offline payments through NFC technology and AI-based conversational payments.
The Governor also emphasized the importance of expanding the use of digital payments, citing the ‘Har Payment Digital’ mission launched last year. This mission aims to onboard every Indian into the digital payments ecosystem, with 6.65 crore new UPI users added since its inception in March 2023. Additionally, the Payments Infrastructure Development Fund (PIDF) has further bolstered this growth with over 1.2 crore new digital payment touchpoints.
Under the theme “Digital Payment, Safe Payment,” the Governor stressed the pillars of trust in digital payments: transparency, ease of use, and security. The RBI’s efforts in this regard include the Electronic Banking Awareness and Training (e-BAAT) programs conducted nationwide, focusing on educating the public about digital payment products, fraud awareness, and grievance redressal.
Looking ahead, the Governor announced plans for regional campaigns to develop digitally-enabled clusters in places like vegetable markets and public transport infrastructure. These efforts aim to deepen the penetration of digital payments across various sectors.
In a significant move towards enhancing internet banking transactions, the Governor announced the approval for an interoperable payment system for internet banking transactions through NPCI Bharat BillPay Ltd (NBBL). This system, expected to launch this year, will facilitate quicker settlement of funds for merchants, addressing existing challenges and boosting user confidence in digital payments.
The Governor concluded by calling upon all stakeholders, including industry players, payment system operators, media, and digital payment users, to join hands in fulfilling the mission of ‘Har Payment Digital.’ He emphasized that this mission is not just for the RBI but for the entire nation, highlighting the collective responsibility in India’s digital payments journey.
