UPI transactions skyrocket, marking a 147pc surge in five years: Government Reports
Written By Shashwat Sankranti
Published: Dec 18, 2023, 20:25 IST | Updated: Dec 18, 2023, 20:25 IST
UPI
The Unified Payments Interface (UPI) has emerged as the powerhouse behind a remarkable surge in digital payments, reducing the growth of banknotes in circulation to 7.8 per cent in the last fiscal year, according to a government statement reported by Hindustan Times.
Minister of State for Finance Bhagwat K Karad revealed in a written reply to Lok Sabha that UPI transactions have skyrocketed from 92 crore rupees ($11 million) in FY 2017-18 to 8,375 crore rupees ($1 billion) in FY 2022-23, boasting an impressive Compound Annual Growth Rate (CAGR) of 147 per cent in terms of volume.
Simultaneously, the value of UPI transactions has soared from 1 lakh crore rupees ($1 trillion) in FY 2017-18 to 139 lakh crore rupees ($16 trillion) in FY 2022-23, demonstrating a robust CAGR of 168 per cent.
In the ongoing financial year until December 11, UPI has achieved a staggering 8,572 crore transactions. UPI constitutes 62 per cent of digital payment transactions in FY 2022-23, contributing significantly to the decline in the Year-on-Year growth of banknotes in circulation.
The journey of UPI, initiated in 2016 as an instant payment system by the National Payments Corporation of India (NPCI), has seen continuous evolution.
Recently, the Reserve Bank of India (RBI) granted approval to link RuPay credit cards to UPI, eliminating the need for a physical plastic card. This move enables customers to use RuPay credit cards seamlessly at small merchant outlets equipped with QR codes.
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