In a significant revelation, the Union Minister of State for Finance, Dr. Bhagwat Karad, recently provided key insights into the remarkable growth of Unified Payments Interface (UPI) transactions in India. The data showcases the phenomenal rise in both volume and value of UPI transactions, underscoring the pivotal role of digital payments in shaping the country’s financial landscape.
Unprecedented UPI Growth: The statistics presented by Dr. Karad highlight the astonishing growth of UPI transactions over the years. From a modest 92 crore transactions in FY 2017-18, the volume skyrocketed to an impressive 8,375 crore in FY 2022-23, reflecting a staggering Compound Annual Growth Rate (CAGR) of 147%. Equally noteworthy is the surge in the value of these transactions, reaching Rs. 139 lakh crore in FY 2022-23 from a mere Rs. 1 lakh crore in FY 2017-18, exhibiting a remarkable CAGR of 168%.
As of December 11, 2023, UPI has already notched up an impressive 8,572 crore transactions in the current financial year, solidifying its position as a key driver in the overall growth of digital payment transactions in India. UPI commands a substantial 62% share of the digital payment market in FY 2022-23.
Government Initiatives and Policies: The Indian government has played a pivotal role in promoting digital transactions, fostering an environment conducive to the surge in UPI usage. Some of the noteworthy initiatives include:
1. Incentive Schemes: Introducing schemes to promote RuPay Debit cards and low-value BHIM UPI transactions, facilitating person-to-merchant (P2M) transactions.
2. Advisories for Infrastructure Improvement: Providing advisories to various stakeholders to enhance payment acceptance infrastructure, ensuring a seamless digital payment experience.
3. Digital Literacy Programs: Launching the Pradhan Mantri Gramin Digital Saksharta Abhiyaan (PMGDISHA) to enhance digital literacy in rural India, a crucial step in ensuring widespread adoption.
4. Target Setting: Allocating and monitoring digital payment transaction and merchant acquisition targets for both Public and Private Sector Banks.
RBI’s Role in Promoting Digital Banking: The Reserve Bank of India (RBI) has been actively involved in promoting digital banking, undertaking initiatives such as:
1. Awareness Programs: Conducting Electronic Banking Awareness and Training (e-BAAT) programs across the country to educate citizens on digital payment products, fraud prevention, and grievance redressal.
2. Digital Payments Awareness Week: A dedicated week to raise awareness about digital payments, contributing to the ongoing mission of ‘Har Payment Digital.’
3. Multimedia Campaigns: Launching multimedia campaigns such as ‘RBI Says’ or ‘RBI Kehta Hai’ to inform the public about various digital payment initiatives, emphasizing customer safety, security, and convenience.
Innovations in Digital Payments: The RBI’s approval for linking RuPay credit cards to UPI represents a significant leap in enhancing customer convenience and promoting digital transactions. This move offers the following benefits:
1. Cardless Transactions: Eliminating the need for physical plastic cards when using RuPay credit cards through UPI QR codes.
2. Wider Acceptance: Enabling customers to use credit cards seamlessly, even at small merchant outlets equipped with QR codes.
Conclusion: The revelations by Dr. Bhagwat Karad underscore the transformative impact of digital payments in India, with UPI emerging as a frontrunner in this financial revolution. The government’s proactive initiatives, coupled with the RBI’s continuous efforts to promote digital literacy and innovation, bode well for the future of a cashless, digital economy in India. As UPI transactions continue to break records, it is evident that the nation is rapidly embracing the digital future of finance.
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Related Press Release is as follows:
Ministry of Finance
UPI transactions grew from Rs. 1 lakh crore in FY 2017-18 to Rs. 139 lakh crore in FY 2022-23 in value, at a CAGR of 168%
Year-on-Year growth in the value of bank notes in circulation decreases from 9.9% in FY 2021-22 to 7.8% in FY 2022-23
Posted On: 18 DEC 2023
Unified Payments Interface (UPI) transactions have grown from 92 crore in FY 2017-18 to 8,375 crore in FY 2022-23 at a Compound Annual Growth Rate (CAGR) of 147% in terms of volume. Similarly, the value of UPI transactions has grown from Rs. 1 lakh crore in FY 2017-18 to Rs. 139 lakh crore in FY 2022-23 at a CAGR of 168%.
UPI has achieved 8,572 crore transactions during current financial year till 11th December, 2023. UPI has been the major driving force in the overall growth of digital payment transactions in the country accounting for 62% of digital payment transactions in FY 2022-23. The Year-on-Year growth in the value of bank notes in circulation has decreased from 9.9% in FY 2021-22 to 7.8% in FY 2022-23.
The initiatives undertaken by the Government to promote digital transactions include, inter alia;
i. incentive scheme for promotion of RuPay Debit cards and low-value BHIM UPI transactions (P2M),
ii. advisories by the Government of India to various stakeholders to improve payment acceptance infrastructure,
iii. allocation and monitoring year-wise digital payment transaction & merchant acquisition targets to the Public and Private Sector Banks
iv. Pradhan Mantri Gramin Digital Saksharta Abhiyaan (PMGDISHA) to augment digital literacy in rural India, and,
v. other promotion activities conducted with digital payment stakeholders and Law Enforcement Agencies (LEAs).
In order to encourage customers to adopt to digital banking, RBI has also been conducting
i. Electronic Banking Awareness and Training (e-BAAT) programmes across the country with thrust on awareness about Digital Payment Products, Frauds and Risk Mitigation and grievance redressal
ii. Digital Payments Awareness Week
iii. Mission ‘Har Payment Digital’ with the objective of making every person in India aware of digital payments. RBI has also launched ‘75 Digital Villages’ programme in observance of 75 years of Independence and also conducts multimedia channel / platform based public awareness campaigns under the tag of ‘RBI Says’ or ‘RBI Kehta Hai’ to create awareness among members of public about various digital payment initiatives that cover customer’s safety, security and convenience.
Reserve Bank of India has given permission to linking of RuPay credit cards to UPI. The benefits to the consumers are:
i. Once the RuPay credit card is linked to UPI, there is no need to carry the physical plastic card for using it through UPI QR, and,
ii. Enable customers to spend using credit cards even at small merchant outlets with QR codes.
The above information was provided by UNION MINISTER OF STATE FOR FINANCE, DR. BHAGWAT KARAD, while giving a written reply to an unstarred question in Lok Sabha today.
