RBI to inject another Rs 1.1 lakh crore to enhance liquidity in banking system
The RBI said that the steps were being taken after a review of the current liquidity and financial conditions.
Unified Payments Interface (UPI)’s contribution cumulatively to the digital payments ecosystem more than doubled in five years, data from the Reserve Bank of India (RBI) said.
UPI contribution has risen from 34 per cent in 2019 to 83 per cent in 2024.
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RBI payment system report has said that the share of other digital payment methods, such as National Electronic Funds Transfer (NEFT), Real Time Gross Settlement (RTGS), Immediate Payment Service (IMPS), and credit and debit cards, declined to 17 per cent at the end of 2024 from 66 per cent in 2019.
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The growing share of India’s real-time payments system, UPI, can be attributed to the increasing adoption of this digital payment method.
Between 2019 and 2024, the volume of UPI P2M (person-to-merchant) payments grew faster than UPI P2P (person-to-person) transactions.
The data further said that the UPI P2M grew at a compound annual growth rate of 99 per cent for transaction values below Rs 500 over the five-year period while the UPI P2P grew at a CAGR of 56 per cent during the same period.
For ticket-sized transactions exceeding Rs 2,000, the UPI P2M grew at a CAGR of 109 per cent during the same five-year period, while UPI P2P recorded a CAGR of 57 per cent.
Further, there was a 13 per cent year-on-year increase in the average ticket size of a UPI Lite transaction, rising from Rs 87 in December 2023 to Rs 98 in December 2024.
Prepaid payment instruments (PPIs), which include digital wallets, declined by 12.3 per cent in volume, falling to 3.45 billion transactions in the second half of calendar year 2024 (H2 CY24) from 3.93 billion in H2 CY23.
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