Correct Answer : 44%
Transactions using the UPI (Unified Payments Interface) network touched a record high in July 2023, both in terms of volume and value, after witnessing a slight dip in June 2023.
Growth in Volume and Value :
The value of total
UPI transactions touched
₹15.34-lakh crore, up
4 per cent m-o-m and
44 per cent y-o-y.
The number of transactions touched a high of
996 crore during the month, higher by
6.6 per cent from the previous month and
58 per cent compared to July 2022, according to data provided by the
National Payments Corporation of India (NPCI).
The number of monthly transactions crossed the
900-crore in
May 2023 and is expected to cross the
1,000-crore mark in the current quarter, according to market participants.
The growth in the value of UPI transactions has been over
40 per cent y-o-y and the growth in the volume has been above
50 per cent y-o-y.
In June, the transactions were 59 per cent higher y-o-y and value of transactions was higher by 45 per cent y-o-y.
Impressive Performance in FY23 :
In FY23, the UPI platform processed a total of
8,376 crore transactions aggregating to
₹139-lakh crore, compared with
4,597 crore transactions worth
₹84-lakh crore in FY22.
UPI-led retail digital payments grew at a
CAGR of
50 per cent in volume and
27 per cent in value between
FY17 and FY22, per RBI’s annual report for 2022-23.
The central bank’s Digital Payments Index, a measure of the extent of digitisation of payments across the country,
rose to 395.57 in March 2023 from 377.46 in September 2022 and
349.30 in March 2022.
The Economic Survey for 2022-23 said that UPI transactions, on an average, grew
121 per cent in value and 115 per cent in volume between
FY19 and
FY22. It further said that India has the highest fintech adoption rate of
87 per cent compared to the global average of 64 per cent, helping the country to achieve the third place in digital payments behind the US and China.
Future Projections and Dominance of UPI Payments :
UPI transactions are expected to breach
100 crore transactions per day by
FY27, per a report by PwC India.
According to the report, UPI payments will dominate the retail digital payments landscape, accounting for
90 per cent of total transaction volumes over the next 5 years..
Source :
The Hindu Businessline