RBI Governor highlights dominance of UPI in digital payments

UPI: Reserve Bank of India Governor Shaktikanta Das said the digital trades in India have risen 90-fold in 12 years, with India accounting for about 46% of the planet’s digital transactions.

Reserve Bank of India Governor Shaktikanta Das announced on March 4 that the share of Unified Payments Interface (UPI) in digital payments had surged close to 80 percent in 2023. 

Speaking at the RBI headquarters in Mumbai during the central bank’s Digital Payments Awareness Week programme, Governor Das praised UPI as the foremost fast payment system, not only in India but also globally.

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UPI’s Remarkable Growth

Governor Das highlighted the exponential growth of UPI transactions, noting that the volume had surged from 43 crore in CY-2017 to a staggering 11,761 crore in CY-2023. 

Moreover, between March 1, 2023, and January 31, 2024, approximately 6.65 crore new UPI users were added, underscoring the platform’s widespread adoption and popularity among consumers.

Rapid Expansion of Digital Payments

The governor emphasized the remarkable expansion of retail digital payments in India, citing a surge from 162 crore transactions in FY2012-13 to over 14,726 crore transactions in 2023-24 (till February 2024). 

This exponential growth represents a nearly 90-fold increase over 12 years, positioning India as a global leader in digital transactions. 

Governor Das noted that India currently accounts for nearly 46% of the world’s digital transactions, based on 2022 data.

Implications and Future Outlook

The dominance of UPI in India’s digital payments landscape reflects the significant strides made by the country’s financial ecosystem in fostering digital adoption and innovation. 

Governor Das’s remarks underscore the pivotal role of UPI in driving financial inclusion and accelerating the transition towards a cashless economy. 

As India continues to embrace digital payments, policymakers and stakeholders must remain committed to enhancing the security, accessibility, and efficiency of digital payment systems to sustain this growth trajectory.