- Decline Rate Success: UPI technical decline rates have dropped from 10% in 2016 to 0.8% in 2024, reflecting improved infrastructure.
- Enhanced Accessibility: Higher transaction caps on UPI Lite and UPI123Pay are expected to increase adoption.
- Global Expansion: India's UPI model continues to gain traction internationally, with partnerships spanning Asia, Africa, and the Americas.
- UPI Usage Surge: October 2024 saw record-breaking UPI transactions in both volume and value.
The rate of technical declines for UPI transactions in India has significantly reduced to 0.8% from 10% in 2016. This improvement was highlighted by Dilip Asbe, Managing Director and CEO of the National Payments Corporation of India (NPCI), during the 11th SBI Banking & Economics Conclave 2024 on November 19.
“Technical decline rates have reduced to 0.7-0.8% from as high as 8-10% in 2016,” Asbe stated, emphasizing the role of advanced technology and infrastructure in this remarkable progress.
Key Developments in UPI Ecosystem
| Aspect | Details |
|---|---|
| Technical Decline Rate | Reduced from 8-10% (2016) to 0.7-0.8% (2024). |
| UPI Lite Transaction Cap | Increased from ₹500 to ₹1,000 per transaction to facilitate low-ticket transactions. |
| UPI123Pay Transaction Cap | Raised to ₹10,000 per transaction, up from ₹5,000, to enhance accessibility for feature phone users. |
| UPI Transaction Growth | October 2024: 16.58 billion transactions worth ₹23.50 lakh crore, up 10% month-on-month. |
| Global Partnerships | India’s UPI and RuPay stacks are partnered with 5 countries, exploring ties with 10 more nations. |
UPI Lite & UPI123 Pay to Boost Adoption
NPCI continuously upgrades UPI to cater to a diverse population and improve user convenience. The following updates were recently introduced:
- UPI Lite
- Designed for low-ticket transactions.
- Transaction Limit Raised: From ₹500 to ₹1,000 per transaction.
- Helps reduce the burden on core banking systems.
- UPI 123Pay
- Created for feature phone users to access UPI without the internet.
- Supports 12 languages, enabling broader reach.
- Transaction Cap Increased: From ₹5,000 to ₹10,000 per transaction.
These features are expected to drive greater adoption of digital payments and further decrease reliance on cash in the country.
October 2024 UPI Performance
The growth of UPI continues at an unprecedented pace:
- Total Transactions: 16.58 billion, a 10% increase from September 2024 (15.04 billion).
- Transaction Value: ₹23.50 lakh crore, up 14% from ₹20.64 lakh crore in September.
Why Does This Matter?
The dramatic reduction in UPI’s technical decline rates and the introduction of user-centric features like UPI Lite and UPI123Pay reflect the robustness of India’s digital payment infrastructure. The system’s efficiency, combined with its growing global reach, positions UPI as a revolutionary model in the world of payments.
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