In December 2023, the value of digital transactions based on the Unified Payments Interface (UPI) in India reached an astounding 17.4 lakh crore rupees, according to the latest report by the Reserve Bank of India (RBI). This remarkable success clearly demonstrates the growing popularity and widespread adoption of digital payments throughout the country.
The monthly bulletins issued by the RBI provide valuable insights into both domestic and global economic events. However, it should be noted that the bulletin does not represent the views of the central bank but provides significant information regarding the state of the economy.
Trade transactions on the UPI platform witnessed a staggering 74 percent year-on-year growth, with a total number of over 6.5 billion transactions. This increase in trade transactions highlights the changing consumer behavior and the growing preference for digital payments across various sectors.
The RBI’s December 2023 bulletin prominently highlighted the dynamic growth of digital transactions in November 2023 across major payment systems. There was a noticeable 37 percent increase in order volumes in the e-commerce sector compared to the previous year. Holiday sales and the increasing preference for online platforms contributed to over 50 percent of sales happening through digital channels.
To meet the growing demand for digital transactions in key sectors, RBI has introduced a significant policy change. On December 8, RBI Governor Shaktikanta Das announced an increase in the UPI transaction limit for educational and medical services to 5 lakh rupees. This substantial increase compared to the previous limit of 1 lakh rupees aims to facilitate smooth and secure digital payments in these crucial sectors.
The growth of UPI transactions and the continuous development of digital payments in India signify a significant shift in the way financial transactions are conducted between individuals and businesses. With advancing technology and growing digital infrastructure, the future of digital payments in India appears promising, offering greater convenience, security, and efficiency for all parties involved.
Frequently Asked Questions (FAQ):
1. What does UPI stand for?
UPI stands for Unified Payments Interface, which is a payment system in India that enables users to transfer funds between bank accounts using smartphones.
2. What are the benefits of digital payments in India?
Digital payments in India offer greater convenience, security, and efficiency. They also facilitate online commerce and contribute to the growth of the e-commerce sector.
3. What are the prospects for the development of digital payments in India?
With continuous technological advancements and improvements in digital infrastructure, the future of digital payments in India appears promising. Greater utilization of digital payments by individuals and businesses is expected, leading to increased convenience, security, and efficiency for all parties involved.
Sources:
– RBI’s monthly publication report: www.rbi.org.in
The source of the article is from the blog tvbzorg.com