The payments mechanism promoted by the Reserve Bank of India, Unified Payments Interface (UPI), has been 100% higher than the previous month. According to the figures shared by the National Payments Corporation of India (NPCI) that manages the UPI, 7.69 Crore transactions were reported in October, while in September it was around 3.09 Crore. In the context of the total amount migrated through the UPI, this value was 7,057 Crore, which was Rs 5,325 Crore in the previous year. There has been a surge of 32.5%.
The UPI, which comes out as a key game changer in P2P digital payments after the currency ban, is constantly gaining momentum since the previous year. Apart from this, the popular brands such as Google and Truecaller have also seen a sharp jump in its volume by entering into the UPI Payments space.
The government has also introduced its own application BHIM (India Interface for Money) to work on the UPI platform. BHIM has been broadcast on a large scale. At the same time, about 57 banks in NPCI’s Partnership have made their UPI applications live on the platform. From the commencement of this financial year, the UPI transaction amount rose by 380% to 7.7 Crore in October, which was 38 Lakh in April this year.
This is mainly due to the payment unit of Flipkart’s PhonePe and BHIM. With the introduction of Google’s “Tez” payment application, it has been witnessed that there has been a big leap in P2P payments done through the UPI platform. Industry experts stated that due to the festive season in October, e-commerce companies have offered loads of discounts and rolled out promotional offers, this has also increased the UPI transactions in the month.
Going a year back on 8 November 2016, Narendra Modi declared the ban on currency with an intention to pull out black money right from the core and make the country aware of the importance of cashless transaction. And exactly after a year, the country now has multiple options for online transaction authorized by the government resulting in the figures that are recorded so far, for instance, the total transaction of the UPI.