HDFC Bank accounts for one-fourth of all Unified Payments Interface (UPI)-based transactions, Nitin Chugh, head of digital banking, said on Friday. “We are among the top three on UPI and would be somewhere in the range of, probably, one-fourth of the market,” Chugh said.
According to data released by the Reserve Bank of India (RBI), UPI recorded a total of 6.2 million transactions aggregating
`2,390 crore in March 2017. This puts the average value of UPI transactions at around `3,855.
HDFC Bank on Friday announced the launch of a UPI facility on digital payments app, Chillr. Chugh said while UPI contributes only a small portion of overall mobile banking transactions at his bank by value and by volumes, its share is growing. The average ticket size of a UPI transaction is between Rs 2,500 and Rs 3,000, he said.
UPI was launched by National Payments Corporation of India (NPCI) in 2016 as a payment channel which would bypass the requirements of producing the beneficiary’s account number, IFSC code and other related details. It instead relies on a single virtual payment address (VPA) to identify the beneficiary and uses a four-digit mPin for authentication by the payee.
In the wake of the government’s November 8 move to demonetise 86% of the currency then in circulation and the subsequent launch of the bank-agnostic Bharat Interface for Money (BHIM) app, usage of the UPI channel has grown exponentially.
Between November 2016 and March 2017, the aggregate transaction value on UPI has jumped more than 26 times. Of the roughly 2,20,000 transactions made through UPI on a daily basis, between 80,000 and 90,000 come from the BHIM app, according to NPCI managing director and CEO AP Hota.