UPI made a record Unified Payments Interface (UPI) transactions have reached another milestone in May, according to new data from the National Payments Corporation of India or NPCI. As per the data, India’s leading digital payments platform UPI has broken another record by processing transactions worth over Rs 10 lakh crore. this is the first time UPI Platform Large transaction amount as has been processed.
As per the data available on NPCI website, UPI Transactions 10,41,506.60 crore has been spent in the month of May. As per NPCI data, a record volume of 5,955.09 million transactions have been registered. On a year-on-year basis, UPI transaction volume has increased by 117 per cent, while the volume of UPI transactions processed has doubled as compared to May 2021. Meanwhile, on a month-on-month basis, transaction volume was up 6.63 per cent. The data shows that the value of transactions has increased by 5.91 per cent as compared to April this year.
The UPI platform was launched in 2016 by the government-backed NPCI, and has gained wide acceptance. India since. The payment method saw a surge in popularity during the COVID-19 pandemic that hit India in March 2020, when online payment methods were being encouraged to promote contactless transactions. During March 2020, the number of UPI transactions stood at 124 crores which was Rs 2.06 lakh crores.
What is UPI?
“Unified Payments Interface (UPI) is a system that powers multiple bank accounts in a single mobile application (of any participating bank), merging multiple banking features, seamless fund routing and merchant payments into one hood. It also caters to “peer to peer” collection requests which can be scheduled and paid as per requirement and convenience, says the NPCI website.
UPI enables instant money transfer round the clock and 365 days through a mobile device round the clock using a single mobile application to access various bank accounts.
record Breaking moment for UPI
In FY 2022, UPI transactions crossed the watershed $1 trillion as per NCPI data. As per the data, the value of UPI transactions rose to Rs 83.45 trillion for the year, which is around $1 trillion. NPCI is now targeting daily UPI transactions of R$1 billion over the next two to three years. It is the largest retail payment system in the country in terms of transaction volume, indicating its wide acceptance.
This will be facilitated by the recent announcements made by the Reserve Bank of India. On March 9 this year, the central bank introduced a facility whereby you do not need a smartphone or internet connection to make UPI payments. The UPI123Pay system announced by RBI is being tested while NPCI has announced UPIlite which makes it possible to use the facility in offline mode.