Should We Aim for 1 Billion UPI Transactions a Day in 2-3 Years?
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Synopsis
In a bold move, Finance Minister Nirmala Sitharaman has set her sights on achieving one billion UPI transactions daily within the next 2-3 years. This ambitious target emphasizes the urgent need for collaboration and innovation to enhance the UPI ecosystem and expand its global footprint.
Key Takeaways
- Target of 1 billion UPI transactions per day in 2-3 years.
- Significant growth in UPI transactions with 72% CAGR.
- Collaboration among stakeholders is essential for infrastructure improvement.
- UPI onboarding of 26 crore new users and 5.5 crore merchants.
- Enhancing cybersecurity and user experience is a priority.
New Delhi, April 28 (NationPress) Finance Minister Nirmala Sitharaman highlighted the ambitious goal of achieving one billion Unified Payments Interface (UPI) transactions daily within the next 2–3 years. She emphasized the significance of expediting the internationalisation of UPI through creating interoperable frameworks and broadening global payment acceptance.
During a meeting aimed at assessing various dimensions and future strategies for the UPI ecosystem, the Finance Minister urged officials to enhance efforts in bringing more users and merchants onto the UPI platform, thereby amplifying its reach and effectiveness.
She called upon all involved parties to collaborate in bridging infrastructure gaps, improving the end-user experience, and fortifying cybersecurity measures.
The Union Minister also instructed the NPCI to strengthen UPI’s resilience and avert potential disruptions.
The discussions revolved around boosting the resilience, scalability, and real-time monitoring of the UPI infrastructure to guarantee seamless service delivery and bolster user confidence.
UPI is experiencing remarkable growth. From FY 2019–20 to FY 2024–25, UPI transactions have shown a compound annual growth rate (CAGR) of 72 percent.
NPCI representatives informed the Finance Minister that from FY 2021–22 to FY 2024–25, around 26 crore new users and 5.5 crore new merchants have been effectively onboarded onto the UPI platform, bringing the total to approximately 45 crore active users annually.
In FY 2024-25, UPI transactions reached a staggering Rs 261 lakh crore, reflecting a 30 percent year-on-year growth. In terms of transaction volume, 18,586 crore transactions occurred in FY 2024-25, marking a 42 percent annual increase.
The UPI saw a monthly increase of 13.59 percent in transaction volume, totaling 18.3 billion in March, up from 16.11 billion in February, according to the latest NPCI data. March recorded an impressive Rs 24.77 lakh crore in UPI-based transactions, a 12.79 percent rise from Rs 21.96 lakh crore in February.
On average, the UPI network processed more than 590 million transactions daily, with a total daily transaction amounting to Rs 79,910 crore, as per NPCI data.
Point of View
It is crucial to recognize the transformative potential of UPI in India's financial landscape. The Finance Minister's ambitious target reflects the government's commitment to enhancing digital payments and financial inclusion. However, achieving this goal necessitates a concerted effort from all stakeholders to address the challenges and infrastructure gaps within the UPI framework.
NationPress
21/06/2025
Frequently Asked Questions
What is the current growth rate of UPI transactions?
UPI transactions are experiencing a compound annual growth rate (CAGR) of 72% from FY 2019-20 to FY 2024-25.
How many new users have been onboarded onto the UPI platform?
Approximately 26 crore new users have been onboarded onto the UPI platform between FY 2021-22 and FY 2024-25.
What was the transaction volume in FY 2024-25?
In FY 2024-25, UPI transactions totaled 18,586 crore, marking a 42% increase from the previous year.
How does UPI contribute to digital payments in India?
UPI plays a pivotal role in promoting digital payments in India, ensuring seamless transactions for users and merchants alike.
What measures are being taken to enhance UPI's security?
Stakeholders are working collaboratively to improve cybersecurity measures and infrastructure to enhance user confidence in UPI.
