Paradigm shift in digital transactions in India during last 4 years since 2018-19

Paradigm shift in digital transactions in India with growth of more than 200% in digital payment volume during the last four years since 2018-19

45 billion UPI transactions registered in FY 21-22, showing 8 times growth in last 3 years and 50 times growth in last 4 years

For promotion of digital payments, Ministry of Electronics and Information Technology (MeitY) has introduced the Incentive Scheme for promotion of RuPay Debit Cards and low-value BHIM-UPI transactions for the current financial year. This was stated by the Union Minister of State for Finance Dr Bhagwat Kisanrao Karad in a written reply to a question in Lok Sabha today.

The Minister said that several initiatives have been taken by Government of India, RBI, NPCI and Banks, to promote digital transactions and to create awareness about digital payments in the country. Some of the initiatives are BHIM-UPI, UPI-123, Aadhar Payment Bridge, AePS etc.

As a result of the various initiatives taken, the Minister stated, there has been a paradigm shift in digital transactions in India which is reflected in terms of the increase in the volume of digital transactions over the last four financial years as illustrated below:

Source: RBI

As observed from the above table, there has been a growth of more than 200% in digital payment volume during the last four years since 2018-19, the Minister stated. Further, as per the data sourced from National Payments Corporation of India (NPCI), UPI transactions registered in FY 21-22 were 45 billion, showing 8 times growth in last 3 years and 50 times growth in last 4 years, the Minister stated.

The month-wise data for the UPI transactions registered during the last year i.e 2022 is as under:

Giving out more information, the Minister stated that the Scheme provides financial incentive to Banks for promoting point-of-sale (PoS) and e-commerce transactions using RuPay Debit Cards and person-to- merchant (P2M) transactions of low value (i.e up to Rs.2,000) on the BHIM-UPI platform. The Scheme also promotes UPI lite and UPI 123 PAY as economical and user-friendly digital payment solutions. MeitY has allocated Rs. 2,600 crore for the Scheme for FY 2022-23.

The incentive Scheme has promoted digital payments by incentivising Banks to build a robust digital payments ecosystem and to promote RuPay Debit Cards and BHIM-UPI as low-cost digital payments mode across all sectors and segments of population, the Minister stated.

The Minister further said that banks are adopting latest digital technologies to provide their customers with enhanced and hassle-free banking services in a digital mode. Further, promotion of digital payment is one of the priorities of the Government to facilitate hassle free and seamless banking transactions for the people of the country.