Prime Minister Narendra Modi has lauded the outstanding accomplishment of 6 billion UPI transactions in July, the highest ever since 2016. In a response to a tweet by Union Finance Minister Nirmala Sitharaman on Tuesday, the Prime Minister said, “This is an outstanding accomplishment. It indicates the collective resolve of the people of India to embrace new technologies and make the economy cleaner. Digital payments were particularly helpful during the COVID-19 pandemic.”
Unified Payments Interface (UPI) clocked over 6 billion transactions in July — the highest ever by India’s flagship digital payments platform since its inception in 2016.
UPI reported 6.28 billion transactions amounting to Rs. 10.62 trillion, according to data released by the National Payments Corporation of India (NPCI), which operates the platform. Month-on-month, the volume of transactions was up 7.16 percent and value increased 4.76 percent. Year-on-year (YoY), the volume of transactions nearly doubled while value of transactions was up 75 percent.
In March 2022, the Ministry of Electronics and IT informed that Digital Payments transactions have been steadily increasing over the last few years, as a part of the Government of India’s strategy to digitise the financial sector and economy.
Over the past four years, digital payment transactions have grown from Rs 3,134 crore in FY 2018-19 to Rs 5,554 crore in FY 2020-21. During the financial year 2021-22, a total of 7422 crore digital transactions were reported till February 28, 2022.
Bharat Interface for Money-Unified Payments Interface (BHIM-UPI) has emerged as the preferred payment mode of the citizens and has achieved a record of 452.75 crore digital payment transactions with the value of Rs 8.27 lakh crore till February 28, 2022. COVID-19 pandemic has established that digital payments enable access to healthcare as well through contactless payment modes like BHIM-UPI QR code in consonance with the “new normal” of social distancing.
The Reserve Bank of India (RBI), in exercise of the powers conferred by the Banking Regulation Act, 1949, the Reserve Bank of India Act, 1934 and Payment and Settlement Systems Act, 2007, has issued the Master directions, namely, Reserve Bank of India (Digital Payment Security Controls) directions, 2021 to the Regulated entities (REs) including Scheduled Commercial Banks, Small Finance Banks, Payment Banks and Credit Card issuing NBFCs (Non-Banking Financial Companies).
Further, digital payments are enabled through multi-factor authentication. The key objectives of multi-factor authentication are to protect the confidentiality of payment data as well as enhance confidence in digital payment by combating various cyber-attack mechanisms, like, phishing, keylogging, spyware/ malware and other internet-based frauds targeted at REs and their customers. A strong grievance redressal mechanism has been set up by the Government and RBI to address the grievances related to cyber financial frauds of the individuals, in a time-bound manner.