Transactions on the Unified Payments Interface (UPI) platform hit a new high in April 2023, with the number of transactions touching 890 crore and the value of these transactions reaching a record high of Rs 14.07 lakh crore. The surge in digital transactions is indicative of the increasing adoption of digital payment methods in the country, especially during the ongoing pandemic.
FASTag transactions, on the other hand, saw a slight dip, with the number of transactions at 30.5 crore and the value at Rs 5,149 crore. This was marginally lower than the 30.6 crore transactions seen in March. The FASTag program was introduced by the National Highways Authority of India to enable cashless toll payments at highways across the country.
IMPS transactions, which refer to immediate payment service transactions, saw a dip in both the number of transactions and their value in April. According to data released by the National Payments Corporation of India, IMPS transactions for April were down at 49.6 crore last month from 49.7 crore in March 2023. The value of transactions also dipped to Rs 5.21 lakh crore from Rs 5.46 lakh crore. However, compared to the same month last year, transactions were up 5% in number and 17% in value.
Meanwhile, UPI transactions witnessed a staggering growth of 59% in April 2023 compared to the same period last year. The value of these transactions was also up by 49% from a year ago. Sequentially, the number of UPI transactions was 2.3% higher than the 870 crore recorded in March 2023, the busiest month for digital transactions, and 18% higher than in February. In terms of value, March 2023 was only marginally lower at Rs 14.05 lakh crore.
The UPI platform, which is operated by the National Payments Corporation of India, has been instrumental in driving the growth of digital transactions in India. With its simple and easy-to-use interface, UPI has become a popular choice for individuals and businesses alike. The surge in UPI transactions is likely to continue in the coming months as more people switch to digital payment methods.
The UPI platform has emerged as a popular mode of digital payment, with its transaction volume and value growing consistently over the past few years. In fact, UPI transactions in India are expected to reach $1 trillion by 2023, according to a report by Credit Suisse.
The government of India has also been promoting digital payments as a way to reduce the country’s dependence on cash and bring more people into the formal banking system. The UPI platform is a key component of the government’s Digital India initiative, which aims to transform the country into a digitally empowered society and economy.
Apart from UPI, other digital payment methods like mobile wallets, debit cards, and credit cards have also seen significant growth in recent years. According to a report by the Reserve Bank of India, the volume of digital transactions in the country grew by 19.5% in 2020-21, driven largely by UPI transactions.
In addition to promoting digital payments, the government has also introduced several measures to increase financial inclusion and reduce the digital divide in the country. Initiatives like the Jan Dhan Yojana, which aims to provide banking facilities to every household in the country, and the Bharat Bill Payment System, which enables consumers to pay bills through a single platform, have played a key role in this regard.
As the country continues to move towards a cashless economy, digital payments are likely to become even more popular in the coming years. The surge in UPI transactions is just one indication of the growing acceptance of digital payments in India. With the public’s increasing reliance on digital payments, it is likely that we will see more innovations and advancements in this field in the near future.
