The Unified Payments Interface (UPI) continues its remarkable growth in India, with October witnessing a staggering 16.58 billion transactions totaling ₹23.5 lakh crore, the highest since its inception in April 2016.
Significant Monthly Growth
According to data released by the National Payments Corporation of India (NPCI) on Friday, the volume of UPI transactions increased by 10% and the value surged by 14% compared to September. This growth is indicative of the increasing reliance on digital payment methods across the country.
Daily Averages Reach New Heights
In October, daily UPI transactions exceeded 535 million in volume and ₹75,801 crore in value. This represents a notable rise from September’s figures of 501 million transactions and ₹68,800 crore in value. The data also highlighted a growth in Immediate Payment Service (IMPS) transactions, which rose by 9% to 467 million.
IMPS and FASTag Transactions Rise
In value terms, IMPS transactions grew by 11%, amounting to ₹6.29 lakh crore in October, up from ₹5.65 lakh crore the previous month. Additionally, FASTag transactions increased by 8%, reaching 345 million, with values rising from ₹5,620 crore in September to ₹6,115 crore in October.
Growth in Aadhaar Enabled Payment System Transactions
The Aadhaar Enabled Payment System (AePS) also saw significant growth, with 126 million transactions recorded in October, marking a 26% increase from 100 million in September. This trend underscores the expanding scope of digital payment systems in India.
Declining Cash Usage Amidst Digital Surge
A recent report by economist Pradip Bhuyan from the Reserve Bank’s Department of Currency Management indicates a rapid decline in cash usage, which still constituted 60% of consumer expenditure as of March 2024. The share of digital payments more than doubled from 14-19% in March 2021 to 40-48% in March 2024, with UPI playing a pivotal role in this transformation.
Record Growth in H1 2024
In the first half of 2024, UPI transaction volume surged by 52%, reaching 78.97 billion, compared to 51.9 billion during the same period last year. The total transaction value also saw impressive growth, increasing by 40% from ₹83.16 lakh crore to ₹116.63 lakh crore.
The remarkable expansion of UPI reflects a significant shift towards digital transactions in India, highlighting the platform’s critical role in the country’s evolving payment landscape.
