UPI TRANSACTIONS JUMP 36% TO ₹60 LAKH CRORE IN JUNE QUARTER

Why in the news?

In the first quarter of the current fiscal year (April to June 2024), India’s Unified Payments Interface (UPI) transactions increased by 36%, reaching a total value of ₹60 lakh crore, according to information given in Parliament.

Key Data on UPI Transactions

  • 4,122 Crore Transactions: Between April and June 2024, UPI enabled 4,122 crore transactions totalling ₹60 lakh crore.
  • 13,113 Crore Transactions in FY24: In FY24, transactions totalled 13,113 crore. In fiscal year 2023-24, UPI transactions totalled ₹200 lakh crore.
  • 8,371 Crore Transactions in FY23: In FY23, UPI processed 8,371 crore transactions worth ₹139 lakh crore.

About UPI (Unified Payments Interface)

  • Introduction: The National Payments Corporation of India (NPCI) launched UPI in 2016 to enable immediate, real-time payment transactions using mobile devices.
  • Growth: UPI has fast become one of India’s most popular digital payment systems, with both the quantity and value of transactions increasing year after year.
  • Security: The system is built with strong security features to ensure safe and dependable transactions.
About NPCI

  • In accordance with the terms of the Payment and Settlement Systems Act, 2007, the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA) launched the National Payments Corporation of India (NPCI), an umbrella organization that manages retail payments and settlement systems in India, with the goal of building a strong payment and settlement infrastructure in the country.
  • Under the terms of Section 25 of the Companies Act 1956 (now Section 8 of the Companies Act 2013), it was incorporated as a “Not for Profit” company.

Objective:

  • To offer the infrastructure needed for both electronic and physical payment and settlement systems for India’s whole banking sector.
  • The company’s main goal is to expand the reach of payment systems and achieve increased operational efficiency by using technological advancements in retail payment systems.

Core Promoter Banks of National Payments Corporation of India (NPCI): 

  • The Punjab National Bank, Canara Bank, Bank of Baroda, Union Bank of India, Bank of India, ICICI Bank Limited, HDFC Bank Limited, Citibank N. A., and HSBC are the ten primary promoter banks.
  • In 2016, the 56 member banks’ shareholding was expanded to include more banks from all industry sectors.