June 26, 2023
In May 2023, a total of 9.4 billion UPI transactions were recorded
Person-to-merchant (P2M) payments accounted for 57% of the total transaction volume through UPI
As RuPay credit cards become linked to UPI, the share of P2M transactions in terms of value is expected to rise further
Circulation of currency decelerated to 5.3% from 8.3% YoY due to increased digital transactions and the withdrawal of INR 2,000 banknotes
UPI transactions are projected to account for 90% of overall retail digital transaction volumes in the next five years, rising from 75.6% as of March-end 2023, according to the monthly bulletin released by the Reserve Bank of India (RBI).
The report highlights that in May 2023, 9.4 billion UPI transactions were recorded, with a significant year-on-year (YoY) increase of 143% in transactions using the UPI Autopay feature. Additionally, there was a 23% YoY growth in new mandate registrations. The RBI also noted the growing prominence of person-to-merchant (P2M) payments, which accounted for 57% of the total transaction volume through UPI.
As RuPay credit cards become linked to UPI, the share of P2M transactions in terms of value is expected to rise further due to the higher average ticket size of credit card purchases compared to UPI. The report also mentions that the overall currency in circulation, the largest component of reserve money, decelerated to 5.3% from 8.3% YoY due to increased digital transactions and the withdrawal of INR 2,000 banknotes.
However, every month, the WALR on fresh rupee loans and WADTDR on fresh deposits declined in April 2023. The increase in WALRs and WADTDRs was higher for public sector banks than private banks.
Source: Financial Express