Nearly 8 out of 10 digital payments are now done through UPI, claims RBI | - Times of India (2024)

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Nearly 8 out of 10 digital payments are now done through UPI, claims RBI | - Times of India? ›

Nearly 8 out of 10 digital payments are now done through UPI, claims RBI. UPI's share in digital payments reached nearly 80% in 2023 and is the biggest contributor to the growth of digital payments in India.

It processes over seventy-five percent of the country's retail digital payments, registering over 14 billion transactions in May 2024 alone.

Compared to March, however, transactions dipped marginally from 1,344 crore (Rs 19.8 lakh crore). However, average daily transactions were marginally higher, reaching a new record of 44.3 crore transactions a day, and averaging a value of Rs 65,933 crore.

The transaction limit for UPI is Rs 1 lakh, except for certain categories of payments which have higher transaction limits. “It has now been decided to enhance the limit for tax payments through UPI from Rs 1 lakh to Rs 5 lakh per transaction. This will further ease tax payments by consumers through UPI,” he added.

The RBI chief went on to note that India accounts for 46% of all digital payments in the world, and that UPI transactions now account for 80% of all digital payments in India. “In 2012-13, there were 162 crore digital payments. This number has grown to 14,726 crore in 2023-24 till February,” he said.

UPI transactions in July 2024 averaged ₹1,430 per transfer, with the system processing 5,390 payments every second. The success of UPI made it a soft power tool for India. It became one of the most successful deep-tech financial innovations India has produced.

Google Pay for faster in-app payments

Use the Google Pay API to add Google Pay as a payment option using the Unified Payments Interface (UPI) intent mechanism. Enable seamless payment flows for your customers in your Android app.

As per the 2024 NCPI guidelines, a merchant has to pay an interchange fee of up to 1.1% of the transaction amount on UPI transactions above Rs.2000. These charges are applicable for transactions made through prepaid payment instruments (PPI) like wallets, Amazon Pay, Google Pay, Phonepe, etc.

Unified Payment Interface, commonly known as UPI, services are now available in multiple countries other than India. These include Sri Lanka, Mauritius, Bhutan, Oman, Nepal, France and UAE.

With over 452 million active users as of January 2024, these alterations have the potential to impact a vast segment of India's population. This blog delves into these pivotal changes, their implications, and how they'll impact your daily UPI interactions.

What are the new rules of RBI in 2024? ›

The Reserve Bank of India (RBI) recently issued a new framework on Domestic Money Transfer (DMT) for regulated firms, making stricter Know Your Customer (KYC) record standards, focusing on banking services, payment systems. The new guidelines will come into effect from November 1, 2024.

1)For adding new payees, specific OTPs are needed from a secondary channel, making the process more secure. 2)New OTPs are required for high-value transactions, enhancing security for important financial dealings. 3)The time limit for OTPs is closely managed to reduce the chance of misuse.

The maximum UPI transaction limit for Google Pay stands at ₹1 lakh (Rs 100,000) across all banks, allowing users to send or receive up to this amount daily.

"With such dynamic developments, it is no wonder that India is a global frontrunner in the digital payment landscape, accounting for a stellar 46 per cent of the global digital transaction volumes in 2022," it said.

India is number one in digital payments and that it's transforming the country's rural economy, PM Modi had said earlier this year. "India is number one in digital payments. India is one of the countries where mobile data is the cheapest. Today, the country's rural economy is transforming," the PM had said.

Which country is using the maximum transaction digitally? India has retained the top spot in the world with 25.5 billion real-time payment transactions, followed by China with 15.7 billion transactions.

Currently, there are 300 million UPI users and 500 million merchants who use UPI to accept payments for their businesses. Meanwhile, NPCI launched four new UPI features in September 2023- Hello! UPI, Credit line on UPI, LITE X product, and UPI Tap & Pay facility.

UPI's share, compared to the cumulative volume of digital payments in the country, has grown from 73.4 per cent in FY23 to 79.7 per cent in FY24. In FY20, UPI's share as compared to the volume of total digital payments in India was pegged at 36.8 per cent.

RTP is important in India due to its implementation in the country's Unified Payments Interface or UPI. An expanded ranking on the number of instant payments per country places India at the top with a figure that was higher than 43 other countries combined.

Best UPI Apps in India #1 – PhonePe. Best UPI Apps in India #2 – Google Pay (Tez) Best UPI Apps in India #3 – PayTm UPI. Best UPI Apps in India #4- Amazon Pay.