UPI transactions had fell to nearly 1 bn transactions in April due to Covid related restrictions pan India that continued for nearly 2 months. Online transactions too fell as the lock down affected delivery of goods, disrupted travel plans, and no sites to book anything with only essential activities taking place. The UPI transactions slowly picked paced towards the end of may as the restrictions were eased to bring back economy on track.
UPI transactions is the new way India is paying money especially in tier 1 and tier 2 cities. Amid the easing of restrictions, UPI (Unified Payments Interface) transactions has hit an all time high with 1.34 billion transactions amounting to Rs.2.62 lakh crores as per national Payments Corporation of India (NPCI) data.
On a month-on-month basis it registered a 8.94 per cent growth from 1.23 billion in May.
UPI payments had fell to 999.57 million in terms of volume with transactions worth Rs 1.51 lakh crore in April, following the coronavirus-induced lockdown that halted almost all services, except essentials.
Online payments slowly gathered pace from May, with staggered opening of the economy. In May, the number of UPI transactions stood at 1.23 billion valued at Rs 2.18 lakh crore, showed the NPCI data.
In June, the volume in terms of transactions touched the highest level so far, as per the data available, with the first set of data dating back to April 2016 — with nil transaction.
The number of transactions through all the available means on NPCI platform, were in upwards of 1 billion since October 2019 before dipping to 999.57 million in April this year. However, it soon regained the 1 billion plus transaction volume in May.
NPCI was incorporated in 2008 as an umbrella organisation for operating retail payments and settlement systems in India. It has created a robust payment and settlement infrastructure in the country.
It facilitates payments through a bouquet of retail payment products such as RuPay Card, Immediate Payment Service (IMPS), UPI, Bharat Interface for Money (BHIM), BHIM Aadhaar, National Electronic Toll Collection (NETC Fastag) and Bharat BillPay.
NPCI also launched UPI 2.0 to offer more secure and comprehensive services to consumers and merchants.