India is witnessing a surge in digital payments as more people are opting for online transactions. In February alone, transactions through the Unified Payments Interface (UPI) soared to an impressive Rs 18.2 lakh crore, totaling 122 crore transactions.
The transactions made in February via the popular payment mechanism were slightly lower than in January, when the total value of transactions was Rs 18.4 lakh crore, with the number of transactions recorded at 121 crore.
According to data from the National Payments Corporation of India (NPCI), India sees an average of Rs 40,000 to Rs 80,000 crore in daily UPI transactions.
Other online payment methods such as NEFT and RTGS also saw substantial activity, with average transactions totaling Rs 33.85 lakh crore and Rs 146 lakh crore, respectively. Internet banking and mobile banking transactions were also significant, totaling Rs 91.24 lakh crore and Rs 28.16 lakh crore, respectively, in January 2024.
In 2022, India accounted for nearly 46% of global digital transactions. According to Reserve Bank of India (RBI) Governor Shaktikanta Das, UPI transactions in India accounted for almost 80% of all digital payments in 2023.
Retail digital payments in India has experienced rapid growth, rising from 162 crore transactions in 2012-13 to over 14,726 crore transactions by February 2024 – a 90-fold increase in just 12 years.
UPI, India’s mobile-based fast payment system, has become immensely popular, allowing customers to make instant payments round-the-clock using Virtual Payment Addresses (VPAs).
The government is keen on extending the benefits of UPI beyond India’s borders, engaging in collaborations with countries like Sri Lanka, Mauritius, France, UAE, and Singapore.