In a testament to India’s rapid embrace of digital technologies, External Affairs Minister S Jaishankar proudly announced that Indians now conduct more cashless transactions in a month than Americans do in three years.
Speaking to the Indian community in Nigeria, Jaishankar highlighted the transformative journey of India’s digital landscape, citing the widespread adoption of cashless payments and the success of Unified Payments Interface (UPI).
Jaishankar attributed India’s remarkable progress to its deep integration of technology into daily life. He noted that the reliance on cash has significantly diminished, with a substantial portion of the population opting for cashless transactions.
Jaishankar further emphasized the strides made in digital public infrastructure, particularly pointing to the success of UPI, which has become a major player in India’s digital payment sector.
The surge in UPI transactions in 2023 further exemplifies India’s digital revolution. With 8,375 crore transactions reported in FY2022-23, marking a compound annual growth rate (CAGR) of 147%, UPI has become a dominant force in digital payments.
The total value of UPI transactions reached Rs 17.4 lakh crore in December 2023, representing a substantial increase from the Rs 1 lakh crore recorded in FY 2017-18.
Recognizing the growing importance of UPI, the Reserve Bank of India (RBI) implemented measures to enhance its accessibility. In 2023, the RBI raised UPI payment limits for hospitals and educational institutions, making transactions up to Rs 5 lakh per transaction possible. Additionally, the introduction of the ‘instant credit via UPI’ feature allows users to access pre-approved credit lines quickly.
In a bid to extend digital payments to remote areas, UPI Lite X was introduced, enabling users to send and receive money without an internet connection. These advancements underscore India’s commitment to fostering financial inclusion and bringing the benefits of digital transactions to every corner of the country.
