MUMBAI: Transactions under Unified Payments Interface reached a record high of 456 crores in December 2021, surpassing the high of 421 crores seen in October 2021. The total value of transactions in December was also a new record of Rs 8.27 lakh crore.
According to bankers, the increase in transactions is a reflection of the increase in economic activity in December following a sharp decline in second wave cases along with increasing adoption.
is i Transactions broke records in October due to festive season purchases and online sales by e-commerce companies. However, there was a slight decline in November after the peak of the festival. December marked a 9% increase in transaction count and 7.6% increase in value. Compared to transactions in December 2020, UPI usage doubled in both value and volume in December 2021.
In calendar 2021, there were 3800 crore UPI transactions amounting to Rs 73 lakh crore. National Payments Corporation of India, which runs the UPI platform, expects volumes to reach one billion a day when reserve Bank of India Operates the use of UPI wallet for low-value offline transactions. This will enable payments to be made without putting pressure on the core banking system of banks.
UPI transactions were already the dominant mode of electronic payment in the country and now the number of card transactions is almost eight times higher. Unlike credit cards, which are meant only for merchant payments, UPI numbers reflect an increase in both peer to peer transfers as well as merchant payments.
Since UPI is an account-to-account transfer mechanism, bankers say they will have to rethink their core banking architecture to handle such a large volume of daily transactions. On the evening of December 31, customer payments on food ordering apps led to record transactions on UPI.
According to bankers, the increase in transactions is a reflection of the increase in economic activity in December following a sharp decline in second wave cases along with increasing adoption.
is i Transactions broke records in October due to festive season purchases and online sales by e-commerce companies. However, there was a slight decline in November after the peak of the festival. December marked a 9% increase in transaction count and 7.6% increase in value. Compared to transactions in December 2020, UPI usage doubled in both value and volume in December 2021.
In calendar 2021, there were 3800 crore UPI transactions amounting to Rs 73 lakh crore. National Payments Corporation of India, which runs the UPI platform, expects volumes to reach one billion a day when reserve Bank of India Operates the use of UPI wallet for low-value offline transactions. This will enable payments to be made without putting pressure on the core banking system of banks.
UPI transactions were already the dominant mode of electronic payment in the country and now the number of card transactions is almost eight times higher. Unlike credit cards, which are meant only for merchant payments, UPI numbers reflect an increase in both peer to peer transfers as well as merchant payments.
Since UPI is an account-to-account transfer mechanism, bankers say they will have to rethink their core banking architecture to handle such a large volume of daily transactions. On the evening of December 31, customer payments on food ordering apps led to record transactions on UPI.
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