UPI Transactions grew from Rs. 1 Lakh Crore to Rs. 139 Lakh Crore in FY 2022-23

Unified Payments Interface (UPI) transactions have grown from 92 crore in FY 2017-18 to 8,375 crore in FY 2022-23 at a Compound Annual Growth Rate (CAGR) of 147% in terms of volume. Similarly, the value of UPI transactions has increased at a CAGR of 168% from 1 lakh crore in FY 2017-18 to 139 lakh crore in FY 2022-23.

UPI has completed 8,572 crore transactions in the current financial year, which ends on December 11, 2023. UPI has been the main source of the country’s total increase in digital payment transactions, accounting for 62% of digital payment transactions in FY 2022-23. The value of banknotes in circulation has grown by 7.8% year on year, down from 9.9% in FY 2021-22 to 7.8% in FY 2022-23.

The initiatives undertaken by the Government to promote digital transactions include, inter alia;

i. Incentive scheme for promotion of RuPay Debit cards and low-value BHIM UPI transactions (P2M),
ii. Government of India has sent advisories to various stakeholders in order to strengthen payment acceptance infrastructure.
iii. Public and private sector banks are allocated and monitored year-by-year digital payment transaction and merchant acquisition targets.
iv. Pradhan Mantri Gramin Digital Saksharta Abhiyaan (PMGDISHA) to augment digital literacy in rural India, and,
v. Other promotional activities were carried out in collaboration with digital payment stakeholders and Law Enforcement Agencies (LEAs).

In order to encourage customers to adopt to digital banking, RBI has also been conducting –

i. Electronic Banking Awareness and Training (e-BAAT) programs are being implemented around the country, with a focus on raising awareness about Digital Payment Products, preventing fraud and risk, and resolving complaints.

ii. Digital Payments Awareness Week.

iii. Mission ‘Har Payment Digital’ aims to make digital payments available to everyone in India. In commemoration of 75 years of independence, the RBI has also launched the ’75 Digital Villages’ program, and it also conducts multimedia channel / platform-based public awareness campaigns under the banner of ‘RBI Says’ or ‘RBI Kehta Hai’ to raise public awareness about various digital payment initiatives that address customer safety, security, and convenience.

Reserve Bank of India has given permission to link RuPay credit cards to UPI. The benefits to the consumers are:

i. Once the RuPay credit card is linked to UPI, it is no longer necessary to carry the physical plastic card in order to use it via UPI QR.
ii. Allow customers to use credit cards even at small merchant outlets by employing QR codes.

The above information was provided by the UNION MINISTER OF STATE FOR FINANCE, DR. BHAGWAT KARAD, while giving a written reply to an unstarred question in Lok Sabha.