In the recent announcement made in Parliament, the growth of UPI transactions has been a significant talking point. Over the first quarter of the fiscal year 2024-25, there has been a remarkable increase of 36 percent, with transactions reaching the Rs 60 lakh crore mark. This data was provided by Pankaj Chaudhary, the Minister of State for Finance, during a session in the Lok Sabha.
Overview of UPI Transaction Growth
Between April and June 2024, an impressive 4,122 crore UPI transactions were recorded, totaling about Rs 60 lakh crore. This represents a significant jump from the 2,762 crore transactions recorded in the same period the previous year, which had a total value of Rs 44 lakh crore.
Comparative Data from Previous Fiscal Years
Looking back at the fiscal year 2023-24, the total UPI transactions amounted to 13,113 crore, with a cumulative value of Rs 200 lakh crore. The year before that, FY23, saw 8,371 crore transactions worth Rs 139 lakh crore, and FY22 recorded 4,596 crore transactions with a total of Rs 84 lakh crore.
Introduction of Cardless Cash Deposits
Adding to the versatility of UPI-based transactions, Chaudhary announced the introduction of cardless cash deposits through UPI on an interoperable basis. Initially, this feature is being offered by a select number of banks. To enhance the safety and security of these transactions, there are specific guidelines in place. For instance, a depositor can transfer a maximum of Rs 50,000 per transaction using this method. Banks, however, may opt to set lower limits as per their risk management strategies.
The National Payments Corporation of India (NPCI) is tasked with setting the allowable number of Interoperable Cash Deposit (ICD) transactions per depositor at the level of Payer PSP or NPCI itself. Furthermore, transaction messages must include the depositor’s details and clearly indicate that the transaction is a cash deposit.
This progression in UPI transactions underscores the increasing reliance and trust in digital payment systems in India, reflecting a broader acceptance and integration of technology in financial transactions.
