Transaction Value of UPI Payments in FY26, Pg10

Key Highlights:

• The transaction value of Unified Payments Interface (UPI) payments is projected to reach approximately ₹314 lakh crore in FY26.
• UPI was launched on August 25, 2016, for public use, following a pilot launch on April 11, 2016.
• Its transaction value has seen significant growth from ₹0.07 lakh crore in FY17.
• Experts recognize UPI as a highly successful pillar of India’s Digital Public Infrastructure (DPI).

Detailed Insights:

• UPI is an instant payment system developed by the National Payments Corporation of India (NPCI), an entity formed by the Reserve Bank of India (RBI) and the Indian Banks' Association (IBA).
• It enables real-time inter-bank peer-to-peer (P2P) and person-to-merchant (P2M) transactions using mobile devices and a unique Virtual Payment Address (VPA) or UPI ID.
• The system operates 24/7, 365 days a year, facilitating instant transfers and significantly contributing to a cashless economy.
• Users can link multiple bank accounts to a single UPI application, and transactions are secured with a PIN.
• Digital Public Infrastructure (DPI), of which UPI is a core component, refers to open, inclusive, and interoperable digital systems designed for public utility.
• The success of UPI is underpinned by a comprehensive digital ecosystem, including initiatives like Jan Dhan and Aadhaar, along with widespread affordable internet access.
• India's DPI model, including UPI, has garnered global attention and is being explored or adopted by other countries.

Key Concepts Involved:

• Unified Payments Interface (UPI): An instant real-time payment system developed by NPCI that facilitates inter-bank transactions via mobile devices.
• Digital Public Infrastructure (DPI): Open, inclusive, and interoperable digital systems built for public use, enabling service delivery and data exchange at a societal scale.
• National Payments Corporation of India (NPCI): An umbrella organization for retail payments and settlement systems in India, an initiative of RBI and IBA, which developed UPI.