RBI Aims to Increase Daily UPI Transactions by 50%

byPriyanka JuyalLast Updated: October 28, 2024

Synopsis

RBI plans to increase daily UPI transactions from 500 million to 1 billion soon.
UPI is currently available in seven countries and aims for more global connections.
RBI is focusing on security and thorough testing before launching the Central Bank Digital Currency (CBDC) nationwide.
The wholesale CBDC pilot started in November 2022, followed by retail trials in December 2022.
he CBDC aims to simplify and lower costs for international payments by cutting out intermediaries.

The Reserve Bank of India (RBI) is working towards reaching 1 billion daily transactions on the Unified Payments Interface (UPI) soon, up from the current 500 million. Speaking at the Annual International Banking Seminar in Washington, DC, RBI Governor Shaktikanta Das highlighted UPI’s success in making payments quicker and simpler for millions in India.

However, the RBI is being careful about introducing its own digital currency, the Central Bank Digital Currency (CBDC). Governor Das emphasized that the RBI will conduct thorough testing to ensure its security and reliability before a national launch.

UPI Transactions Set to Reach 1 Billion Daily

Current Milestone: UPI transactions in India have recently hit 500 million per day.
Future Goal: RBI aims to double this, reaching 1 billion transactions a day in the coming months, according to RBI Governor Shaktikanta Das.
Recent Growth: In September 2024, UPI processed a total of 15.04 billion transactions, valued at ₹20.64 lakh crore, according to the National Payments Corporation of India.

Expanding UPI Internationally

To make it easier for people to send and receive money across borders:

Countries Already Linked: UPI is now available in seven countries— Sri Lanka, Mauritius, UAE, Singapore, France, Bhutan, and Nepal.
Future Plans: RBI is working to connect India’s UPI system with the payment systems of more countries, which would help streamline international transactions.

RBI’s Careful Approach to the Digital Rupee (CBDC)

Governor Das emphasized that the RBI is taking a cautious approach with the CBDC, also known as the e-rupee, focusing on:

Security and Reliability: Extensive trials are underway to test CBDC’s design, security, and functionality before launching it on a larger scale.
Cross-Border Potential: The CBDC could simplify and lower costs for cross-border payments by reducing the need for multiple intermediaries.

Timeline of CBDC’s Pilot Testing

The RBI’s phased pilot testing for the CBDC began in late 2022:

Retail Transactions: On December 1, 2022, the retail pilot began, enabling individual and business participation in testing the CBDC for everyday transactions.

Wholesale Transactions: The initial pilot for wholesale CBDC transactions, focused on government securities, was launched on November 1, 2022.

Priyanka Juyal

Priyanka Juyal- a Writer with a curious mind & vision to create the best out of words. Other times, see her playing the guitar, sketching or narrating folk tales!

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