India‘s Unified Payments Interface (UPI) revolution is making waves, with a staggering 138% increase in transaction value from 2017-18 to 2023-24. This transformation is reshaping the cashless landscape and propelling the nation towards a digital-first economy.
Role of the Department of Financial Services
The Department of Financial Services (DFS) under the Ministry of Finance plays a crucial role in promoting digital payments across India. Their initiatives support the expansion of digital payment systems, ensuring that the benefits of a cashless economy reach all citizens.
Global Expansion of UPI and RuPay
India’s digital payment revolution is not confined to its borders. UPI and RuPay are gaining traction globally, enabling seamless cross-border transactions for Indians living and traveling abroad. Currently, UPI is operational in seven countries, including the UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, and Mauritius. This international growth is set to enhance remittance flows, foster financial inclusion, and solidify India’s standing in the global financial landscape.
According to the ACI Worldwide Report 2024, India is expected to account for approximately 49% of total worldwide real-time payment transactions in 2023, positioning the country as a leader in the digital payments space.
Growth in Digital Payment Transactions
The digital payment landscape in India has witnessed remarkable growth. The total volume of digital payment transactions surged from 2,071 crore in FY 2017-18 to 18,737 crore in FY 2023-24, reflecting a compound annual growth rate (CAGR) of 44%. Notably, during the first five months (April-August) of the FY 2024-25, transaction volume reached 8,659 crore.
The value of transactions also saw a significant increase, rising from Rs. 1,962 lakh crore to Rs. 3,659 lakh crore, with an 11% CAGR. In just the initial five months of FY 2024-25, the total transaction value soared to an impressive Rs. 1,669 lakh crore.
Continued Success of UPI
UPI remains the cornerstone of India’s digital payment ecosystem. Since its inception, UPI transactions have skyrocketed from 92 crore in FY 2017-18 to 13,116 crore in FY 2023-24, achieving a CAGR of 129%. During the April-August period of FY 2024-25, UPI transaction volume reached 7,062 crore.
The user-friendly nature of UPI, coupled with an expanding network of partnering banks and fintech platforms, has made it the preferred choice for real-time payments among millions of users in India.
Furthermore, the value of UPI transactions has escalated from Rs. 1 lakh crore to Rs. 200 lakh crore, with a CAGR of 138%. In the first five months of FY 2024-25 alone, the transaction value increased dramatically to Rs. 101 lakh crore.
India is firmly on the path to becoming a global leader in digital payments. With the ongoing expansion of UPI and the rise in digital transactions, the country is setting new standards for financial inclusion and economic empowerment. The DFS remains dedicated to fostering secure, scalable, and inclusive digital payment systems, paving the way for a cashless economy that benefits all citizens.
