Unified Payment Interface (UPI) transactions have experienced a remarkable surge, as indicated by a parliamentary reply. The figures show a substantial increase from 92 crore transactions in FY 2017–18 to a staggering 8,375 crore transactions in FY 2022–2023. Additionally, the value of these transactions rose from ₹1 lakh crore in FY 2017–18 to ₹139 lakh crore in FY 2022–2023. A recent report revealed a 46% increase in UPI transactions in November compared to the same month the previous year, demonstrating a remarkable 54% surge in volume and a 46% increase in value, according to the National Payments Corporation of India (NPCI).
Several factors contribute to the success of UPI, including its user-friendly interface and 24/7 accessibility. The Reserve Bank of India (RBI) has been proactive in enhancing the security and fairness of the UPI ecosystem.
Looking ahead to 2023, there are notable changes in the UPI ecosystem:
- Increased UPI Usage for Educational and Medical Payments:
- UPI is set to see increased usage for payments made to educational and medical facilities.
- Raised UPI Daily Limit:
- The central bank has increased the UPI daily limit to ₹5 lakh, encompassing payments to medical facilities and academic organizations. This limit applies to payment apps like Paytm, Google Pay, PhonePe, and similar services offered by banks.
- Quick UPI Credit:
- A groundbreaking development in 2023 is the introduction of ‘instant credit via UPI.’ This feature allows customers to access pre-approved credit lines from their banks through UPI, facilitating rapid and efficient access to credit.
- UPI Lite X for Offline Payments:
- UPI Lite X aims to enable digital payments even in remote locations, allowing users to send and receive money over UPI without requiring an internet connection.
- Hello! UPI – Conversational Payments:
- Enhancing user experience, the ‘Hello! UPI’ feature enables voice-enabled UPI payments via UPI apps, telecom calls, and Internet of Things devices. Users can conduct transactions in various languages using voice instructions and a UPI PIN for verification.
Analysts view these continuous improvements and regulatory measures as positioning UPI as a transformative force reshaping India’s financial landscape. The advancements in UPI contribute to greater financial accessibility and inclusion for all, making digital payments more usable and accessible.
