Prime Highlights
- UPI recorded its highest ever monthly transactions, reaching 22.64 billion in March.
- The strong growth shows rising use of digital payments across urban and rural areas.
Key Facts
- UPI is India’s real time payment system that allows instant money transfers between bank accounts.
- The National Payments Corporation of India manages UPI and drives digital payment infrastructure in the country.
Background
India’s digital payment system saw strong growth in March, with UPI recording its highest ever monthly transactions. The National Payments Corporation of India said the platform processed 22.64 billion transactions during the month.
The total value of transactions reached ₹29.53 lakh crore, showing a strong increase from the previous month. In February, the platform handled 20.39 billion transactions worth ₹26.84 lakh crore. This steady rise shows that digital payments are growing across the country.
Every day, UPI recorded 730 million transactions on an average basis, with a transaction value of ₹95,243. Compared to the same period last year, transaction volume grew by 24 percent, while value increased by 19 percent.
Industry experts said the growth reflects wider adoption of digital payments in both urban and rural areas. Anand Kumar Bajaj, Founder and CEO of PayNearby, said more people are using real-time payments for everyday needs. He added that digital services are reaching smaller towns, with assisted models helping new users come on board.
Cashfree Payments Co-founder and CEO Akash Sinha stated that UPI has become the primary payment method used by millions of people. He explained that security systems need to be maintained at a high level despite the fact that usage continues to increase.
He mentioned that the Reserve Bank of India had taken certain steps to guarantee safety for all transactions through better authentication processes and novel security features.
The digital economy of India now relies on UPI because increasing smartphone adoption enables more merchants to accept UPI payments, which receive backing from government policies.