News

Published: November 17, 2023
Updated: November 17, 2023

UPI Hits Remarkable Milestone with 11 Billion Transactions in Two Months: RBI Bulletin Unveils Festive Surge

The Unified Payments Interface (UPI) achieves a historic feat by adding one billion transactions in just two months, reaching an impressive 11 billion, as revealed in the latest Reserve Bank monthly bulletin. This marks the swiftest addition of a billion transactions to date.

Festive Boost and Digital Payment Expansion:

Buoyed by the festive season, digital payments experience robust expansion in October 2023. Year-on-year growth in major payment modes surpasses the previous month's increase, highlighting the significant impact of the festival season on the digital payment landscape.

IPO Uptake and Robust Adoption:

The Initial Public Offering (IPO) facility through UPI witnesses robust adoption, with the number of mandates nearly doubling in October 2023 compared to the same month in 2022. This underlines the increasing role of UPI in facilitating financial transactions, including significant financial events like IPOs.

Credit Card Ascendancy:

Credit cards continue their ascent, supported by features like cashbacks, reward points, contactless cards, and UPI-linked credit cards. The RBI bulletin emphasizes the continued growth and relevance of credit cards in the evolving digital payment ecosystem.

Global Recognition:

Global payments service provider Worldline reports a staggering 62% surge in UPI transactions in India during the first half of 2023 compared to the same period last year. This attests to the global recognition and adoption of India's UPI as a preferred digital payment solution.

P2M Transactions Driving Growth:

The India Digital Payments Report for H1 2023 reveals that out of the total 51.91 billion UPI transactions, 29.15 billion were Person-to-Merchant (P2M) payments, constituting approximately 56.1% of the total. The report underscores the pivotal role of P2M transactions in driving the overall growth of UPI.

Regulatory Measures for Cross-Border Transactions:

To ensure orderly development in cross-border payments, the RBI decides to regulate entities involved in payment and settlement for cross-border export/import transactions. These entities will be designated as "Payment Aggregators - Cross Border (PA-CB)" under the Payment and Settlement Systems Act, 2007.

Festive Cheer fuels surge

Rapid acceleration of UPI transactions, coupled with the festive season's positive impact, signifies the dynamic evolution of India's digital payment landscape. The robust adoption of UPI in significant financial events and the continuous growth of credit cards underscore the resilience and adaptability of the digital payment ecosystem. The regulatory measures introduced by the RBI further affirm the commitment to fostering a secure and orderly development of cross-border payments, reflecting a forward-looking approach to financial innovations.