UPI Revolutionizes India's Digital Payment Landscape

Current Affairs National

Posted by newadmin on 2025-01-29 10:11:30 |

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India's digital payment landscape has undergone a significant transformation, with the Unified Payments Interface (UPI) playing a central role. By the end of 2024, UPI accounted for 83% of the total payment volume in India, a sharp increase from 34% in 2019. This growth is a testament to the widespread adoption and effectiveness of UPI in facilitating digital transactions across the country.

The Reserve Bank of India (RBI) recently reported that UPI transactions surged to 17,221 crore, contributing to an overall payment volume of 20,787 crore. In 2018, UPI processed 375 crore transactions, and by 2024, this number had skyrocketed to 17,221 crore. Similarly, the value of UPI transactions saw a dramatic rise, increasing from Rs 5.86 lakh crore in 2018 to Rs 246.83 lakh crore in 2024. This remarkable growth translates to a compounded annual growth rate (CAGR) of 89.3% in volume and 86.5% in value over the past five years.

The rise of UPI has had a significant impact on other payment systems, such as RTGS, NEFT, IMPS, credit cards, and debit cards, leading to a decline in their combined share of total payment volume. From 66% in 2019, their share has dropped to just 17% by 2024.

India's overall digital payment system has experienced substantial growth. The total payment value surged from Rs 1,775 lakh crore in 2019 to Rs 2,830 lakh crore in 2024. Retail digital payments also witnessed a massive increase, with transactions rising from 162 crore in the financial year 2013 to over 16,416 crore in 2025, marking an almost 100-fold growth over 12 years.

The RBI’s Digital Payment Index, which reflects the expansion of digital payment infrastructure, has grown more than four-fold in the past six years. It reached 445.50 in March 2024, up from a base of 100 in March 2018. This growth indicates that digital payment systems in India are becoming increasingly accessible and efficient.

Since 2023, digital transactions have grown 94 times in volume and over 3.5 times in value. Over the past five years, digital payments have increased 6.7 times in volume and 1.6 times in value. This consistent growth shows a strong trend towards digitalization, with a five-year CAGR of 45.9% in volume and 10.2% in value, further solidifying the shift towards digital payment methods in India.

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