India’s Digital Payments Boom: UPI Transactions Reach New Heights
The Union Finance Ministry of India has reported a remarkable increase in digital payments, with the total value reaching Rs 1,669 lakh crore in the first five months (April-August) of the current financial year 2024-25. The volume of digital payment transactions has also surged to 8,659 crore during the same period.
UPI Transactions Skyrocket
UPI (Unified Payments Interface) transactions have shown impressive growth, increasing from Rs 1 lakh crore to Rs 200 lakh crore at a compounded annual growth rate (CAGR) of 138%. In the last five months alone, the total transaction value has reached Rs 101 lakh crore.
Overall Digital Payment Growth
According to the Finance Ministry, digital payments in India have grown significantly, with the total number of transactions rising from 2,071 crore in FY 2017-18 to 18,737 crore in FY 2023-24, at a CAGR of 44%. The value of transactions has also grown from Rs 1,962 lakh crore to Rs 3,659 lakh crore at a CAGR of 11%.
Global Expansion
UPI and RuPay are expanding globally, enabling seamless cross-border transactions for Indians living and traveling abroad. UPI is now live in seven countries, including the UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, and Mauritius. This expansion is expected to boost remittance flows, improve financial inclusion, and elevate India’s position in the global financial landscape.
Doubts Revealed
Digital Payments -: Digital payments are when you use your phone or computer to pay for things instead of using cash or cards.
UPI -: UPI stands for Unified Payments Interface. It’s a system in India that lets you transfer money between bank accounts using your phone.
Union Finance Ministry -: The Union Finance Ministry is a part of the Indian government that manages the country’s money and finances.
Rs 1,669 lakh crore -: This is a very large amount of money. ‘Rs’ stands for Rupees, which is India’s currency. ‘Lakh’ means 100,000 and ‘crore’ means 10 million.
FY 2024-25 -: FY stands for Fiscal Year, which is a one-year period governments use for accounting and budget purposes. FY 2024-25 means the year starting in 2024 and ending in 2025.
CAGR -: CAGR stands for Compound Annual Growth Rate. It shows how much something has grown each year over a period of time.
Cross-border transactions -: These are payments made between people or businesses in different countries.
Financial inclusion -: Financial inclusion means making sure everyone has access to useful and affordable financial services, like bank accounts and loans.
