UPI Transaction: The value of digital payments in India has surged to an astounding Rs 1,669 lakh crore in the first five months (April-August) of the current financial year 2024-25, according to data released by the Union Finance Ministry. This represents a significant leap in the digital payments landscape, with the volume of transactions reaching 8,659 crore during the same period.
Digital Payments Surge to Rs 1,669 Lakh Crore, Strengthening India’s Digital Economy
A standout feature of this growth is the remarkable performance of Unified Payments Interface (UPI) transactions. The Finance Ministry highlighted that the value of UPI transactions has grown exponentially from Rs 1 lakh crore to Rs 200 lakh crore, with a compounded annual growth rate (CAGR) of 138%. In just the last five months, UPI transaction value alone reached a staggering Rs 101 lakh crore, further cementing UPI’s status as the cornerstone of India’s digital payment ecosystem.
Impact on India’s Digital Economy
The rapid adoption and expansion of digital payment systems like UPI have had a transformative effect on India’s digital economy. Since FY 2017-18, the number of digital payment transactions has grown from 2,071 crore to 18,737 crore by FY 2023-24, at a CAGR of 44%. This growth has fueled financial inclusion and created a more seamless, real-time payment experience for millions across the country.
The ministry also noted that the total value of digital transactions increased from Rs 1,962 lakh crore to Rs 3,659 lakh crore during the period, reflecting the growing trust and reliance on digital payment solutions. The CAGR of 11% in the value of transactions highlights the steady progress toward a more cashless economy, further strengthening India’s digital economic infrastructure.
In addition to domestic growth, the expansion of UPI and RuPay to international markets is expected to bolster remittance flows and expand India’s influence on the global financial stage. Currently live in seven countries, including the UAE, Singapore, and France, UPI is enabling cross-border transactions for Indian consumers and businesses abroad, reinforcing its pivotal role in the global digital payments ecosystem.
The Union Finance Ministry’s efforts to accelerate the adoption of fast payment systems such as UPI continue to revolutionize the way financial transactions are conducted, supporting the vision of a robust, inclusive, and expanding digital economy.
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