In a remarkable feat, the Unified Payment Interface (UPI) in India achieved historic milestones in December 2023, recording an unprecedented 12.02 billion transactions, totaling Rs 18.23 lakh crore. This surge represents a five percent increase in volume and a seven percent increase in value compared to the previous month, showcasing the robust growth of digital transactions in the country.
Unprecedented Growth in 2023: A Closer Look
Comparing the figures to the previous year, the total value of UPI transactions in 2023 reached Rs 183 lakh crore, marking a substantial annual increase of 59 percent. The number of transactions also witnessed a significant surge, experiencing a 45 percent increase and reaching a total of 117 billion transactions, as reported by the National Payments Corporation of India (NPCI).
The surge in UPI transactions is attributed to the government’s concerted efforts in streamlining and enhancing the UPI ecosystem. Recent initiatives, such as allowing NPS contributions through UPI QR codes under the Direct-Remittance (D-Remit) process by PFRDA, have contributed to the platform’s popularity.
In September of the previous year, the Reserve Bank of India (RBI) introduced various payment options on UPI, including conversational transactions. ‘Hello! UPI,’ one of these options, facilitates voice-enabled UPI payments in Hindi and English through apps, telecom calls, and IoT devices. The credit line on UPI allows users to access pre-sanctioned credit from banks.
Another noteworthy addition is LITE X, a product enabling users to send and receive money offline. The UPI Tap and Pay functionality are set to go live for UPI members by January 31, 2024, further enhancing the convenience of digital transactions.
Upcoming Changes: UPI IDs and Beyond
A significant update is the NPCI’s decision to disable inactive UPI IDs that have been dormant for a year, starting January 1, 2024, as per a circular issued on November 7, 2023. Customers, however, have the option to re-register their UPI apps, resuming payments and non-financial transactions using their UPI PIN as needed.
The UPI’s phenomenal growth indicates a paradigm shift towards digital transactions in India, reflecting the effectiveness of continuous innovations and efforts to make digital payments more accessible and convenient for the public.
