Reserve Bank of India (RBI) Governor, Shaktikanta Das on Monday announced that payments made through Unified Payments Interface (UPI) have grown exponentially in the last one year. Transactions done through UPI to cross 36 crore in February 2023, up 50% from 24 crore recorded in February 2022. The value of these transactions is ₹6.27 lakh crore, a growth of 17% over the ₹5.36 lakh crore recorded in February 2022.
Speaking at the launch of Digital Payments Awareness Week at the RBI headquarters, Das said monthly digital payment transactions have crossed Rs 1,000 crore each month during the last three months. He said India’s payment system is globally known, and several countries have shown interest in replicating the success story.
Das also revealed that the number of UPI transactions crossed 800 crore in January 2023, and NEFT (National Electronic Funds Transfer) experienced its highest daily volume of 3.18 crore transactions on 28 February. UPI was launched in 2016 and has emerged as the most popular. The payment mode accounts for 75% of total digital payments.
The adoption of digital payment infrastructure has increased from 170 million touch points to 260 million touch points, showing a growth of 53%. Das launched the mission ‘Har Bahut Digital’, reinforcing the RBI’s commitment to deepen digital payments in the country.
Bharat Bill Payment System (BBPS) has ensured the shift of bill payment from cash/cheque to digital mode, while National Electronic Toll Collection (NETC) system has helped to shift toll payment to digital mode, thereby increasing efficiency. has decreased. Waiting time at toll plaza. The National Automated Clearing House (NACH) system has facilitated Direct Benefit Transfer (DBT) payments digitally, eliminating leakages in the system.
As part of the 75 Digital Villages programme, Das announced that the RBI has decided to adopt 75 villages, comprising village-level entrepreneurs. Under this programme, Payment System Operators (PSOs) will adopt 75 villages and convert them into digital payment enabled villages.
Deputy Governor Rabi Shankar, who heads the Department of Payment Settlement Systems in RBI, addressed the event and said that digital payments have grown by 15% annually in the last five years. Emphasizing on the need for financial formalization of the economy, Shankar said that money is at the core of any economy. He said that RBI’s Digital Vision 2025 is to ensure digital payments everywhere, everywhere and every time by the time the department completes 20 years.
frequently Asked question:
Q1: What is UPI and how does it work?
Unified Payments Interface (UPI) is a real-time payment system that enables inter-bank transactions by transferring funds between bank accounts instantly through mobile devices. It facilitates fund transfer by linking the bank account directly to the mobile number.
Q2: What are the benefits of digital payments, and how does it help the economy?
Digital payments have many benefits including convenience, security and transparency. Digital payments help formalize the economy, reduce leakages and increase efficiency.