External Affairs Minister S Jaishankar underscored India’s remarkable progress in digital payments during an event in Rajasthan’s Bikaner on Wednesday. He emphasized that India conducts Unified Payments Interface (UPI) transactions worth ₹120 crores monthly, in stark contrast to the United States, where digital transactions amount to only ₹40 crores annually.
Jaishankar highlighted the significance of India’s transition to cashless payments through UPI, attributing the success to the country’s advancements in certain domains, lauded globally. UPI, an innovative system, integrates multiple bank accounts into a single mobile application, streamlining various banking services, seamless fund transfers, and merchant payments, as outlined in an official government release. Launched on April 11, 2016, by former Reserve Bank of India (RBI) governor Raghuram Rajan, UPI has revolutionized digital transactions in India.
In a recent development, the RBI proposed facilitating cash deposits in cash deposit machines (CDMs) through UPI, aiming to enhance convenience and promote digital payments. RBI Governor Shaktikanta Das announced this proposal during the monetary policy outlook for the current fiscal year. Das highlighted the success of cardless cash withdrawals using UPI at ATMs, proposing to extend this feature to enable cash deposits in CDMs using UPI.
Furthermore, the RBI intends to expand UPI payments from Prepaid Payment Instruments (PPIs) by allowing the use of third-party UPI apps for transactions from PPI wallets. This move aims to enhance customer convenience and foster the adoption of digital payments for small-value transactions.
Additionally, Das proposed widening access to Central Bank Digital Currency (CBDC) by enabling non-bank payment system operators to offer CBDC wallets, thereby catering to a broader customer base.
Meanwhile, India’s UPI services have expanded beyond its borders, being introduced in Sri Lanka, Mauritius, and Nepal, signifying India’s growing influence in the digital payment landscape.