New Delhi: India’s digital payments system UPI recorded strong growth in February, according to data released by the National Payments Corporation of India (NPCI).
UPI transactions rose 27 percent year-on-year to reach 20.39 billion in February. The total value of these transactions increased 22 per cent compared to last year, touching Rs 26.84 lakh crore.
Although the transaction count was slightly lower than January’s 21.70 billion, the numbers still show steady and strong growth in digital payments across the country.
Higher Daily Usage
The average daily transaction amount in February stood at Rs 95,865 crore. This was higher than January’s daily average of Rs 91,403 crore.
On average, 728 million transactions were made daily in February. In January, this number was 700 million per day. This shows that more people are using UPI every day for payments.
Other Digital Payment Systems
Other digital payment systems also showed growth.
IMPS recorded 336 million transactions in February. The total value stood at Rs 6.42 lakh crore, showing a 14 per cent yearly growth. The average daily transaction count for IMPS was 12 million.
FASTag transactions reached 350 million for the month, with a total value of Rs 6,925 crore. This marked a 5 per cent annual growth.
UPI’s Global Expansion
UPI is now available in more than eight countries, including the UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, Mauritius and Qatar. This global expansion is helping India become a leader in digital payments.
Recently, India and Israel also decided to deepen their financial partnership by enabling cross-border UPI payments. UPI will soon connect with Israel’s domestic payment system to make transactions quicker and cheaper between the two countries.
Most Preferred Payment Method
An independent study commissioned by India’s Finance Ministry found that UPI now accounts for 57 per cent of all payment transactions in India. Cash transactions stand at 38 per cent.
People prefer UPI because it is simple, fast and allows instant money transfer.
