Major Milestone: UPI Achieves Record 15,547 Crore Transactions Worth Rs 223 Lakh Crore by November 2024

UPI’s success is due not only to its strong infrastructure but also to a shift in consumer behavior. The system’s trustworthiness and accessibility have been crucial in driving its widespread adoption.

Business Today Desk | Updated Dec 14, 2024, 8:32 PM IST

The Unified Payments Interface (UPI) has processed an unprecedented 15,547 crore transactions, amounting to Rs 223 lakh crore from January to November 2024, according to the Finance Ministry’s report on Saturday.

In a post on social media platform X, the ministry highlighted UPI’s significant impact on financial transactions in India, using the hashtag #FinMinYearReview2024. The post also noted UPI’s growing global influence and its adoption in numerous countries.

India’s digital payment revolution is gaining international momentum, with UPI and RuPay making considerable progress globally. UPI is now operational in seven countries: the UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, and Mauritius. Launched in 2016 by the National Payments Corporation of India (NPCI), UPI has transformed India’s payment ecosystem by integrating multiple bank accounts into a single mobile platform, enabling instant bank-to-bank money transfers.

This system has streamlined fund transfers, merchant payments, and peer-to-peer transactions. UPI’s features, such as scheduled payments, have made financial transactions faster, more secure, and more accessible, benefiting individuals, small businesses, and merchants while supporting India’s move towards a cashless economy.

In October 2024, UPI set a new record by processing 16.58 billion transactions worth Rs 23.49 lakh crore, marking a 45% year-on-year increase from October 2023, when it recorded 11.40 billion transactions. With 632 banks now linked to its platform, this surge in transactions highlights UPI’s growing dominance in India’s payment sector.

UPI has greatly benefited small businesses, street vendors, and migrant workers, offering an efficient way to transfer funds and receive payments. The adoption of UPI surged during the Covid-19 pandemic as people sought safer, contactless alternatives to cash.

The success of UPI is also due to its robust infrastructure and the shift in consumer behavior. Trust in the system and its widespread accessibility have been key factors in its adoption. UPI’s recent expansion into France, marking its first European presence, is a significant milestone. This allows Indian consumers and businesses to make and receive payments seamlessly while abroad.

Prime Minister Modi has been a strong advocate for UPI’s expansion, particularly within the BRICS group, which now includes six new members. This effort is expected to strengthen remittance flows, promote financial inclusion, and enhance India’s global financial standing. According to the ACI Worldwide Report 2024, cited by the Finance Ministry, India now accounts for about 49% of global real-time payment transactions as of 2023, solidifying its leadership in digital payment innovation.