United Payments Interface (UPI)

The United Payments Interface (UPI) has become the dominant force in India’s digital payments landscape, accounting for 83% of the total payment volume by the end of 2024, according to the Payments System Report by the Reserve Bank of India (RBI). 

• About: The UPI is a payment system that allows users to transfer money between bank accounts and make merchant payments.

o Developed by the National Payments Corporation of India (NPCI) in 2016. 

• UPI’s Dominance in Digital Payments: UPI Market Share: 83% of total digital payment volume by end of 2024 (up from 34% in 2019).

o Other payment systems (RTGS, NEFT, IMPS, Credit & debit cards) saw a decline from 66% to 17%.

• Compounded Annual Growth Rate (CAGR): 89.3% in volume, 86.5% in value.
• RBI’s Role in Payment Innovation: Encourages innovation & regulatory support to make India’s payment system one of the most modern globally.