The use of Unified Payment Interface (UPI) for retail digital transactions is rapidly increasing in India. According to the Reserve Bank of India, UPI’s share in retail transactions is expected to reach 90% in the next five years. In the fiscal year 2022-2023, retail digital transactions from UPI grew at a rate of 75.6%. In May 2023, 941 crore UPI transactions worth Rs 14.3 lakh crore were conducted, while in April 2023, there were 889 crore transactions worth Rs 14.07 lakh crore.
On a monthly basis, UPI transactions grew by 6% in number and 2% in value. These figures were reported in the monthly bulletin published by the Reserve Bank on Friday. It is important to note that the bulletin does not represent the official view of the RBI on the economy.
The growth of UPI transactions is a positive sign for the digital economy in India. It reflects the increasing adoption of digital payment systems by consumers and merchants alike. The convenience, speed, and security of UPI transactions have made it a popular choice for retail transactions. However, it is important to ensure that the growth of digital transactions is accompanied by adequate measures to protect consumers’ privacy and security. The RBI and other regulatory bodies must continue to monitor the digital payments ecosystem to ensure that it remains safe and secure for all users.