The unified payments interface (UPI) transactions have grown from 92 crore in FY 2017-18 to 8,375 crore in FY 2022-23 at a Compound Annual Growth Rate (CAGR) of 147 per cent in terms of volume, the government has said.
Minister of State for Finance Bhagwat K Karad, in a written reply to Lok Sabha, said that the UPI transactions have achieved 8,572 crore transactions during the current financial year till December 11, said the Finance Ministry on Monday.
The value of UPI transactions has grown from Rs 1 lakh crore in FY 2017-18 to Rs 139 lakh crore in FY 2022-23 at a CAGR of 168 per cent, said the ministry in a statement.
“UPI has been the major driving force in the overall growth of digital payment transactions in the country, accounting for 62 per cent of digital payment transactions in FY 2022-23. The Year-on-Year growth in the value of banknotes in circulation has decreased from 9.9 per cent in FY 2021-22 to 7.8 per cent in FY 2022-23,” reads the statement.
In June last year, the Reserve Bank of India gave permission to link RuPay credit cards to UPI, with benefits for consumers like enabling them to spend using credit cards even at small merchant outlets with QR codes. Once the RuPay credit card is linked to UPI, there is no need to carry the physical plastic card to use it through UPI QR.
“UPI facilitates transactions by linking savings or current accounts through users’ debit cards. It is now proposed to allow linking of credit cards on the UPI platform to begin with the RuPay credit cards will be linked to UPI,” RBI Governor Shaktikanta Das said during his speech on India’s monetary policy.