Publish Date: | Thu, 02 Jun 2022 06:44 PM (IST)
Record UPI Transactions: The use of cash is decreasing in the country, and cashless transactions are increasing. Unified Payments Interface (UPI) transactions set a new record in the month of May. For the first time in the country, the value of UPI transactions exceeded Rs 10 lakh crore. According to the latest data released by the National Payments Corporation of India (NPCI), 595 crore transactions were registered under the instant real time payments system in the month of May, valued at Rs 10.41 lakh crore. Earlier in April 2022, 558 crore payments were made, amounting to Rs 9.83 lakh crore. It is expected that the number of transactions will cross 600 crores this month.
Why are UPI transactions increasing?
The demand and acceptance of UPI has grown rapidly since its launch in 2016. At the same time, due to the lockdown and restrictions on going out during the COVID-19 epidemic, more transactions started being done through this medium. According to the data, 124 crore transactions were registered in March 2020, the value of which was Rs 2.06 lakh crore. According to the data released on June 1, monthly transactions have increased by 117 per cent as compared to May 2021 and their value has doubled to 5 lakh crore. In the financial year 2022, UPI saw 46 billion transactions amounting to Rs 84.17 trillion or Rs 84.17 lakh crore. With this, UPI crossed the 1 lakh crore mark.
NPCI’s target
There is a steady increase in the volume and value of UPI payments. NPCI, which oversees UPI, RuPay, Bharat Pay etc. aims to take UPI transactions beyond 100 crore transactions per day in the next two or three years. NPCI has set a target in the next three to five years.
Let us tell you that UPI payment is considered to be the fastest and safest. Today you can transfer funds from your mobile phone to any UPI payment app (Google Pay, PhonePe, Amazon Pay or Paytm). You can easily make payments by linking the UPI app with a debit or credit card.
At present, UPI transactions are mainly occupied by three companies – PhonePe, Google Pay and Paytm Payments Bank. PhonePe accounts for 47 per cent in monthly transactions, while Google Pay and Paytm Payments Bank account for 35 per cent and 15 per cent, respectively. In March 2022, RBI prohibited Paytm Payments Bank from adding new customers. After that all the banks are promoting the use of UPI on their app.
Posted By: Shailendra Kumar