The Unified Payments Interface (UPI), India’s leading digital payments platform, saw a 30 per cent growth in the volume of transactions in June 2018. The data released by the National Payments Corporation of India (NPCI) revealed that the number of transactions in the month was 24.6 crore as against 18.9 crore transactions made in May 2018.
The growth was seen not only with respect to the transaction volume but also the total transaction value. In May 2018, the 18.9 crore transactions were worth Rs.33.2 crore and in June 2018, the 24.6 crore transactions were worth Rs.40.8 crore. It was the first time in the history of UPI transactions that the total number of transactions crossed the 2-crore mark.
Further, the record for the highest number of transactions made in a single day was broken on June 20 when 1 crore transactions were made.
UPI is run by NPCI, a bank-owned private organisation. With the help of the platform provided by the umbrella organisation, all retail payments in the country can be carried out instantly. The fund transfers between accounts through this digital payments interface do not require the beneficiary’s bank account details. The UPI mobile applications, hence, provide a convenient and quick payment mechanism to retail customers.
UPI, which was launched in August 2016, was partnered with 101 banks in May and is currently partnered with 110 banks.
The government, with the intention to ensure wider reach for UPI, has introduced attractive cashbacks. The cashbacks have boosted the transaction volume over time.
Source: Business Standard