The Unified Payments Interface (UPI) has been a game-changer in the Indian payments landscape since its launch in 2016. According to the Reserve Bank of India (RBI) Governor, Shaktikanta Das, UPI can now process a billion transactions a day.
In this article, we will explore UPI’s journey, its current capabilities, and its future potential.
What is UPI?
UPI is a real-time payments system developed by the National Payments Corporation of India (NPCI). It allows users to transfer funds between bank accounts instantly using a virtual payment address (VPA) or mobile number. The UPI infrastructure is built on top of the Immediate Payment Service (IMPS) platform, which allows for fast and secure transactions.
UPI was launched in 2016 with 21 participating banks, and it has grown significantly since then. In just four years, the number of banks on the UPI network has grown to over 200. According to NPCI, UPI processed over 2 billion transactions in February 2021 alone, with a total value of over INR 4 trillion.
UPI’s Current Capabilities
The recent announcement by the RBI Governor, Shaktikanta Das, that UPI can process a billion transactions a day is a significant milestone for the platform. UPI’s current transaction limit is INR 1 lakh per transaction, and users can make up to 20 transactions per day. The platform has also introduced several features such as UPI AutoPay, which allows users to set up recurring payments, and UPI Mandate, which enables users to pre-authorize transactions.
UPI’s Future Potential
UPI’s growth trajectory has been impressive, and it shows no signs of slowing down. NPCI has plans to expand UPI’s capabilities beyond payments to include services such as credit, insurance, and investments. The introduction of UPI 2.0 in 2018 introduced new features such as overdraft facilities and one-time mandates, and NPCI has already announced plans for UPI 3.0.
UPI has transformed the way Indians make digital payments, and it has become an integral part of the country’s payments infrastructure. The recent announcement by the RBI Governor that UPI can process a billion transactions a day is a testament to the platform’s scalability and potential. As UPI continues to grow, it will be exciting to see how it evolves and what new capabilities it brings to the table.