UPI transactions in India hit a new high in November, reaching 15.48 billion, a remarkable 38% year-on-year growth. This surge reflects the increasing adoption of digital payments across the country, with significant growth also seen in FASTag and AePS transactions. The integration of RuPay credit cards with UPI further fuels this digital revolution.
India’s Unified Payments Interface (UPI) achieved a record-breaking 16.58 billion transactions in October, fueled by increased spending during the festive season. This marks a 45 percent jump from the previous year. The top banks for UPI transactions are SBI, HDFC Bank, and YES Bank. While other payment systems like FASTag saw growth, IMPS experienced a slight decline.
India’s digital payment landscape is experiencing a significant shift, with UPI-based transactions soaring while debit card usage declines. Credit card transactions, however, are on the rise, driven by a combination of factors including festival season promotions and a lower base compared to the previous year. This trend reflects a rapid transition towards a cashless society in India, where digital payments are becoming increasingly prevalent.
Flipkart launched a campaign in Bengaluru offering Re 1 auto-rickshaw rides during peak hours, causing a stir on social media. While some praised the initiative as a clever marketing tactic, others lamented the lack of similar offers in their cities.
A Bengaluru autorickshaw driver’s innovative use of a smartwatch to display a UPI QR code for payments has taken the internet by storm, showcasing the rapid adoption of digital technology in India. The incident has sparked discussions about the country’s digital revolution and the potential impact of proposed transaction fees on UPI.
The National Payments Corporation of India (NPCI) has increased the UPI transaction limit for tax payments to ₹5 lakh, making it easier for individuals to pay taxes using their preferred digital payment method. The new limit applies to verified merchants and will be applicable from September 15, 2024.
The Reserve Bank of India (RBI) has increased the transaction limit for tax payments through UPI from Rs 1 lakh to Rs 5 lakh, simplifying high-value transactions. The central bank also introduced ‘Delegated Payments’, a new feature allowing primary users to authorize secondary users for UPI transactions within a set limit. Additionally, the RBI announced measures to streamline digital lending and expedite cheque clearance.
The Reserve Bank of India (RBI) has raised the limit for tax payments through UPI to ₹5 lakh per transaction, further boosting digital payments. Additionally, the RBI has introduced a facility for delegated payments via UPI, allowing individuals to authorize others to make transactions from their accounts. The central bank also maintained its GDP growth forecast for FY25 at 7.2 percent.
PhonePe, a leading Indian fintech company, has revolutionized digital payments in India, boasting over 500 million users and a 40% share of the UPI market. Founded by former Flipkart executives, PhonePe has grown rapidly, offering a wide range of financial services beyond just payments, including merchant loans, advertising solutions, and hyperlocal shopping through its Pincode app.
UPI-ATM, also known as Interoperable Cardless Cash Withdrawal (ICCW), allows customers to withdraw cash from ATMs without using physical cards. This convenient service utilizes UPI apps and QR codes for a seamless transaction experience.
