The Union Minister of State for Finance, Dr. Bhagwat Karad, in a recent session at the Lok Sabha, has shared some remarkable statistics showcasing the unprecedented growth of Unified Payments Interface (UPI) transactions in India. The minister disclosed that UPI transactions, both in terms of volume and value, have experienced an astounding surge, emphasing the nation’s swift transition towards a digital economy.
The data presented by Dr. Bhagwat Karad revealed that UPI transactions witnessed an exceptional Compound Annual Growth Rate (CAGR) of 147% in terms of volume, soaring from 92 crore in the year 2017-18 to an impressive 8,375 crore in the year 2022-23. The surge in transaction value is even more striking, growing from 1 lakh crore to a staggering 139 lakh crore during the same period, at an extraordinary CAGR of 168%. These figures highlight the rapid adoption and acceptance of UPI as a preferred mode of payment among Indian citizens.
As of December 11, 2023, UPI has achieved an outstanding 8,572 crore transactions in the current Financial Year (FY), further solidifying its position as the major driving force behind the overall growth of digital payment transactions in the country. Notably, UPI accounted for a substantial 62% of digital payment transactions in the year 2022-23.
The minister highlighted the strategic initiatives taken by the Government to promote digital transactions and enhance the digital infrastructure. These initiatives include incentive schemes for the promotion of RuPay Debit cards and low-value BHIM UPI transactions, advisories to improve payment acceptance infrastructure and the allocation and monitoring of digital payment transaction targets to both Public and Private Sector Banks.
The Pradhan Mantri Gramin Digital Saksharta Abhiyaan (PMGDISHA) has played a crucial role in augmenting digital literacy in rural India. The Government’s efforts extend to various promotion activities conducted in collaboration with digital payment stakeholders and Law Enforcement Agencies (LEAs).
The Reserve Bank of India (RBI) has also been actively involved in promoting digital banking through initiatives such as the Electronic Banking Awareness and Training (e-BAAT) programs, Digital Payments Awareness Week and the mission of “Har Payment Digital”.
RBI’s initiatives, including the “75 Digital Villages” programme launched in commemoration of India’s 75 years of Independence, highlight the central bank’s commitment to creating awareness about digital payments. Multimedia channel and platform-based public awareness campaigns such as “RBI Says” or “RBI Kehta Hai”, have been instrumental in educating the public about various digital payment initiatives, emphasising customer safety, security and convenience.
A significant development mentioned by Dr. Bhagwat Karad is the RBI’s permission to link RuPay credit cards to UPI. This move is expected to simplify transactions and enhance convenience for consumers. Once linked, consumers will no longer need to carry the physical RuPay credit card for UPI transactions, enabling them to make purchases using credit cards even at small merchant outlets equipped with QR codes.
The decrease in the Year-on-Year growth in the value of banknotes in circulation, from 9.9% in FY 2021-22 to 7.8% in FY 2022-23, further highlights the shift towards digital transactions.
In conclusion, the data presented by Union Minister of State for Finance, Dr. Bhagwat Karad, paints a vivid picture of India’s robust embrace of digital payments, with UPI leading the way. The government’s concerted efforts to promote digital literacy, incentivise digital transactions and collaborate with stakeholders have played a pivotal role in driving this remarkable transformation, laying the foundation for a more digitally inclusive and resilient economy.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
