How UPI Was Built
UPI (Unified Payments Interface) is not an imported idea. It is India’s own creation. It was launched in 2016 by the National Payments Corporation of India (NPCI) with the support of the Reserve Bank of India and Indian banks. Unlike many global technologies that India imported in the past, UPI was born and developed here, making it a true home-grown success.
Nandan Nilekani guided the project, Dilip Asbe and his team built the technical system, and Dr. Raghuram Rajan, then RBI Governor, launched it officially. UPI stands as a collective innovation that reflects India’s ability to design and execute a world-class financial system.
Initial Criticism and Challenges
When UPI was introduced in 2016, it was not welcomed with the same enthusiasm it enjoys today. Many experts doubted whether Indians, who were heavily dependent on cash, would move to digital payments. Some banks were hesitant, fearing that UPI would eat into their card transaction income. There were concerns about security since UPI directly linked bank accounts to mobile phones. Early apps were not user-friendly, and merchants were unsure about settlements and reliability. Global payment players like Visa and Mastercard also viewed UPI as a threat to their dominance, and some commentators even called it a risky experiment. But step by step, UPI overcame these doubts and proved its strength.
From Small Beginnings to Record Volumes
The contrast between UPI’s humble beginnings and its present scale is staggering. In August 2016, the very first month of operations, UPI recorded only about 93,000 transactions with a total value of roughly ₹3 crore. Fast forward to 2025, and UPI has become the backbone of India’s digital economy.
- In FY 2024–25 alone, UPI handled nearly 185.8 billion transactions worth around ₹261 lakh crore.
- In March 2025, UPI set a record with nearly 19.8 billion transactions in a single month, amounting to ₹24.77 lakh crore.
- By August 2025, UPI was processing on average 675 million transactions a day, with a daily value of over ₹90,000 crore.
This phenomenal growth shows how UPI scaled from a small pilot into the largest real-time payment system in the world.
UPI as a Tool Against Black Money and Tax Evasion
Another important impact of UPI is in the fight against black money and tax evasion. Earlier, many payments made in cash remained hidden and outside the formal system, fueling the parallel economy. With UPI, every transaction leaves a digital footprint, making it increasingly difficult to conceal income or bypass taxes.
In fact, in recent days, a large number of GST notices have been issued based on UPI transaction trails. Tax authorities are now able to match UPI payments with GST returns, exposing under-reporting or non-reporting of sales. This has improved compliance, increased government revenue, and strengthened trust in India’s financial system.
How India Benefits When UPI Goes Global
UPI’s reach is no longer limited to India. Several countries have begun linking their payment systems with UPI, including Singapore, UAE, Sri Lanka, France, Mauritius, Nepal, and Bhutan. This global adoption brings many benefits:
1. Licensing of technology – NPCI’s international wing signs agreements with other countries to use UPI, generating revenue.
2. Cross-border transactions – Indians using UPI abroad and foreigners using it in India bring small but steady earnings to NPCI and Indian banks.
3. Tourism growth – Easy UPI payments encourage foreign visitors to spend more, boosting GST collection.
4. Saving foreign exchange – Unlike Visa or Mastercard where fees flow out of India, UPI keeps those savings within the country.
Through these channels, UPI is not only a domestic convenience but also a tool for global financial strength.
A Victory for India and for Humanity
UPI’s story is not only about India’s digital rise but also about progress for all of humanity. By enabling instant, secure, and low-cost transactions, UPI has saved the public enormous amounts of time. No more waiting in bank queues, handling cash hassles, or waiting days for cheques to clear. The time saved is now redirected into productive work, innovation, and industrial growth. Individuals gain more control over their daily lives, businesses operate with faster cash flows, and the economy as a whole grows more efficient. In this sense, UPI is not just a payment app—it is a human innovation that advances society itself.
Conclusion
From being doubted at its launch to becoming the world’s largest real-time payment system, UPI reflects India’s innovation, resilience, and vision. It is saving costs, bringing transparency, creating global recognition, and above all, demonstrating how technology can improve lives. UPI is India’s gift to the world, and its journey is far from over.
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