The value of UPI transactions grew to 139 lakh crore in 2022-23

By Suryafinacialinfotech -

 

The value of UPI transactions grew to 139 lakh crore in 2022-23

As per the written reply of union minister state for finance Dr. BHAGWAT KARAD in Lok sabha the number of UPI transactions has reached 8357 crore in FY 2022-23 from 92 crores in FY 2017-18 and the Compound Annual Growth Rate (CAGR) stood at 147% in terms of volume.

In the same manner, the value of financial transactions through UPI has grown 139 lakh crore in FY 2022-23 from 1 lakh crore in FY 2017-18 with a CAGR of 168%.

UPI has achieved a milestone to become one of the favorable payment methods for digital transactions by accounting for around 62% UPI transactions across the country in FY 2022-23. UPI contributes a significant role and acts as a driving force to the overall growth of digital transactions in the country.

Apart from that, the circulation of bank notes in financial payments has decreased. The value of bank notes showed a drastic decrease at 7.8 % in FY 2022-23 from 9.9% in FY 2021-22.

Government Incentives to promote digital transactions:

  • Government has launched an incentive scheme for rupay debit cards and BHIM UPI transactions of low value.
  • Government has also implemented allocation and monitoring the digital payment transactions on year wise data and allocated merchant acquisition targets to the Public and private sector banks.
  • Government has also released an advisory for stakeholders to promote and improve payment acceptance infrastructure.
  • The Government of India also launched Pradhan Mantri Gramin Digital Saksharta Abhiyaan (PMGDISHA) to increase the pace of digital literacy especially in rural areas.

RBI’s initiatives to promote digital financial inclusion:

  • RBI has launched Electronic Banking Awareness and Training (e-BAAT) in the country to promote awareness about digital payment products and also protect the citizens from frauds and make them understand about risk mitigation and grievance Redressal.
  • RBI has also celebrated digital payment awareness week.
  • RBI has initiated the campaign HAR PAYMENT DIGITAL to make every Indian aware of digital payments.
  • To celebrate the 75 years of independence, RBI has also launched 75 DIGITAL VILLAGES programme.
  • RBI has also launched an awareness campaign RBI SAYS to promote awareness about digital payment products and tell them about safety and security during digital transactions.
  • RBI has also permitted Rupay credit cards to link them on UPI.

Benefits of rupay credit cards linking with UPI:

  • By linking the rupay credit cards with UPI, the customer doesn’t need to carry the card with himself always. He can use UPI QR code instead of that.
  • This step of RBI makes sure that the customer spends through credit cards even small payments through UPI. This made digital transactions more accessible.

Conclusion:

India’s digital payment infrastructure has rapidly evolved, driven by UPI (Unified Payments Interface). UPI enables seamless fund transfers between banks through mobile devices, fostering a surge in digital transactions. Aadhaar, a biometric identification system, enhances security in financial transactions. The government’s push towards a cashless economy has spurred widespread adoption of digital payments, transforming the nation’s financial landscape. Despite challenges, India’s digital payment ecosystem continues to grow, offering convenience and financial inclusion to a large and diverse population.

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