UPI transactions may increase 50% year-on-year going ahead: NCPI
Unified Payment Interface (UPI) transactions are anticipated to grow over 50% year-on-year (YoY), according to Praveena Rai, Chief Operating Officer of National Payments Corporation of India (NPCI). "UPI is a retail payment system, but the same functionality is used by SMEs also. Last month it was 58% growth year-on-year, so we expect that this growth will continue," Rai said on the sidelines of the Global SME Finance Forum 2023.
UPI platform breaks 10 billion monthly transactions
For the first time, the UPI platform surpassed 10 billion transactions in a single month, as per NPCI data. In August, transaction volume grew by 61% YoY, while transaction value increased by 47%. The total value of transactions reached Rs. 15.76 lakh crore, breaking the previous record set in July of Rs. 15.34 lakh crore. UPI averaged around 341 million transactions per day during August.
MSMEs to benefit from increased UPI transaction limits
Rai further announced the limits for micro, small, and medium enterprises (MSMEs) on the UPI platform have also been increased. "Earlier the limit was Rs. 1 lakh per transaction, now it is Rs. 2 lakh per transaction for specific kinds of merchants. The kind of merchants is called verified merchants," Rai said. The higher transaction limits for MSMEs will enable them to conduct larger transactions on the platform, further boosting its usage.
