Transactions on the Unified Payments Interface (UPI) hit 8.03 billion in January, National Payments Corporation of India (NPCI) said in a tweet.
The value of transactions hit nearly Rs 13 trillion in January.
The volume of transactions was 7.8 billion, and value was Rs 12.8 trillion in December.
The rise in UPI transactions coincides with the growth in digital lending.
Though pre-existing payment modes such as debit cards, credit cards, National Electronic Funds Transfer (NEFT) and Real-Time Gross Settlement (RTGS) have grown over time, UPI has shown a quantum jump comparatively to become one of the preferred modes of payment. In this sense, the progress of UPI has been remarkable, the government said in its latest Economic Survey.
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It is envisioned that the journey of UPI will help accelerate the process of financial inclusion and digital adoption in India by creating a more prosperous and inclusive ecosystem that can accommodate larger sections of the population in times to come.
In 2021-22 (April-March), UPI accounted for 52% of financial digital transactions, triple the 2018-19 figure.
Through its international subsidiary, NPCI has been pushing for acceptance of RuPay, and UPI powered applications, cross-border remittance and UPI-like deployment in international markets such as Singapore, United Arab Emirates, France, and Netherlands, among others.
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In the Union Budget for 2023-24, the government has announced various measures that can provide a fillip to UPI. These measures include the extension of Bharat Bill Payments System for non-resident Indians.
The Union Budget 2023 shows a strong commitment to India’s digital future. The KYC Pan norms is a very welcome move which was much required. We applaud the government’s initiative which will provide much relief to the users. We have witnessed a surge in digital payments through the Unified Payment Interface (UPI), with a volume of over 7,600 crore. Thus, the nationwide transformative potential of the FinTech sector is well poised to be realized, George Sam, business head and co-founder, Mindgate Solutions said.