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 ₹1 lakh crore in FY 2017-18 to ₹139 lakh crore in FY 2022-23 at a CAGR of 168%, informed the Ministry of Finance via a PIB release.
It further stated that UPI has achieved 8,572 crore transactions during the 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.
Notably, the initiatives undertaken by the government to promote digital transactions include, inter alia; incentive scheme for promotion of RuPay Debit cards and low-value BHIM UPI transactions (P2M), advisories by the government of India to various stakeholders to improve payment acceptance infrastructure, allocation and monitoring year-wise digital payment transaction & merchant acquisition targets to the Public and Private Sector Banks, Pradhan Mantri Gramin Digital Saksharta Abhiyaan (PMGDISHA) to augment digital literacy in rural India, and, 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:
- 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
- Digital Payments Awareness Week
- 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 link RuPay credit cards to UPI. The benefits to the consumers are:
- 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,
- Enable customers to spend using credit cards even at small merchant outlets with QR codes.
As per the release, the above information was provided by union minister of state or finance, Bhagwat Karad, while giving a written reply to an unstarred question in Lok Sabha on Monday, December 18, 2023.