UPI to comprise 90% of all retail digital transactions in the next five years: RBI

Till March-end 2023, Unified Payments Interface (UPI) transitions accounted for 75.6% of all retail digital transactions

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

Recent Articles

RBI retains repo rate at 6.5%, shifts stance to ‘neutral’ amid inflation focus

October 9, 2024

The Reserve Bank of India’s Monetary Policy Committee (MPC) has …

Read More

India set to become fourth-largest consumer durables market by 2030

October 9, 2024

India is on track to become the fourth-largest market for …

Read More

Government eases export rules for dual-use goods to foreign subsidiaries in 41 countries

October 9, 2024

The Indian government has eased export regulations for 36 dual-use …

Read More