The Economic Survey 2023 observed that the Unified Payments Interface touches its highest-ever mark with 782 crore transactions worth ₹12.8 lakh crore. Also stated that it was a game changer in Real-time payments.
According to a report, growth in UPI-based transactions has increased by 11% and 11%, respectively, between the fiscal years FY19 and FY22 (the calendar year). However, it rose significantly in December 2022.
A report in The Economist (January 2023) attributes the trends of formalisation of the workforce in India to the transformed digital financial architecture, the digitalised GST system and growth in the usage of UPI.
The Unified Payments Interface (UPI) is a system that combines several banking functions, smooth fund routing, and merchant payments into a single mobile application (of any participating bank).
UPI’s advantages became clear during the Covid-19 outbreak, when it provided a crucial lifeline, particularly for tiny and micro traders. Additionally, UPI processed 2,922 billion contactless merchant transactions in FY23, with a value of nearly 21.7 trillion rupees (till December 2022).
The survey found that from 35 banks in December 2017 to more than 380 banks in December 2022, banks joined the real-time payment system.
Additionally, while already-established payment methods like debit cards, credit cards, NEFT, and RTGS have increased over time, UPI has demonstrated a quantum leap in comparison to become one of the preferred payment methods. The development of UPI has been impressive in this regard.
UPI accounted for 17% of the nation’s 3,100 crore digital transactions in FY19. In the following fiscal year, UPI handled 1,250 crore transactions out of 4,600 crore digital transactions, increasing its market share to more than 27%. UPI accounted for 52% of all 8,840 crore financial digital transactions in FY22, highlighted the survey report.
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