'India's UPI transactions way more than US digital payments': EAM S Jaishankar

External Affairs Minister S Jaishankar said India's Unified Payments Interface (UPI) is way more successful than any other country. He noted India is making (UPI) transactions worth Rs 120 crore in a month, while the US is making digital transactions worth Rs 40 crore in a year.

Speaking at an event in Bikaner, Jaishankar said: "Today, we do cashless payments through UPI. We have transactions worth Rs 120 crore in a month. While the US makes digital transactions worth Rs 40 crore in a year. You should see how we have progressed in some areas and the world commends that."

Launched on April 11, 2016, by former RBI governor Raghuram Rajan, UPI combines various banking services for easy money transfers and merchant transactions. It is overseen by the National Payments Corporation of India.

UPI is compatible with BHIM and various third-party apps like Google Pay, Amazon Pay, PhonePe, BharatPe. Many Indian banks support UPI payments without any additional fees, unlike credit or debit card transactions.

UPI transactions in India posted a record 57 per cent rise in volume and 44 per cent rise in value in Financial Year 2023-24, compared to the previous financial year.

In March 2024 too, the transactions saw 55 per cent rise in volume to 13.44 billion and 40 per cent in value to Rs 19.78 trillion compared to March 2023.

This was for the first time that UPI transactions crossed 100 billion and closed at 131 billion in a financial year, compared to 84 billion in 2022-23.

In February 2024, transactions were seen at 12.10 billion and Rs 18.28 trillion respectively. In January 2024, it was 12.20 billion and Rs 18.41 trillion, in terms of volume and value.

“UPI has grown at a very healthy clip in FY 24, the growth in transactions is 56 per cent year on year in terms of volume and 43 per cent YoY in terms of value. There has been a deeper entrenchment of UPI with Average Ticket Size (ATS) reducing steadily, meaning increased use of UPI for small ticket items. The ATS numbers were seen at Rs 1,471 in March 2024 compared to Rs 1,623 in March 2023,” said Sunil Rongala, senior vice president, head of strategy, Innovation & Analytics, Worldline India on UPI transactions.

RBI allows cash deposit machines through UPI

Last week, the Reserve Bank of India proposed to allow users to deposit cash in cash deposit machines (CDMs) through UPI. After announcing the monetary policy outlook, RBI governor Shaktikanta Das said: “Deposit of cash through cash deposit machines (CDMs) is primarily being done through the use of debit cards. Given the experience gained from cardless cash withdrawal using UPI at the ATMs, it is now proposed to facilitate deposit of cash in CDMs using UPI.”

"At present, UPI payments from Prepaid Payment Instruments (PPIs) can be made only by using the web or mobile app provided by the PPI issuer. It is now proposed to permit the use of third-party UPI apps for making UPI payments from PPI wallets. This will further enhance customer convenience and boost adoption of digital payments for small value transactions," Das added. 

UPI is also available fir usage in seven countries. UPI payments are accepted in France, UAE, Singapore, Bhutan, Nepal, Sri Lanka and Mauritius.

To make UPI payments abroad, one must activate international payments in the app settings. For instance, on PhonePe, enabling this feature allows seamless UPI transactions globally.  

To activate UPI international payments on PhonePe, one has to tap on his or her profile picture on the top left, then go to "payment management," choose "international," select bank, enter your UPI PIN, and activate. This method is active for six months and needs reactivation after that period.