You are here: Home » Economy & Policy » News
Business Standard

UPI Jan volume up 77% to 2.3 bn year-on-year, value doubles to Rs 4.3 trn

Deals up 3% by both, value and volume, over December 2020 figures

UPI | Digital Payments

Subrata Panda  |  Mumbai 

Digital payments, especially UPI, saw increased adoption in 2020 due to the Covid-19 pandemic.

Continuing on an upward trajectory, in January saw decent growth with Unified Payments Interface (UPI), the flagship payments platform of National Corporation of India (NPCI), touching a new high both in terms of volume and value.

As per data released by NPCI for January, recorded 2.3 billion transactions worth Rs 4.3 trillion, up 3 per cent both in volume and value terms respectively. On a year-on-year basis, UPI’s transaction volume jumped 76.5 per cent while transaction value jumped almost 100 per cent. They breached the 2-billion (volume) mark for the fourth straight month.

In December, it had handled 2.23 billion transactions worth Rs 4.16 trillion and in November it processed 2.21 billion transactions worth Rs 3.90 trillion. Launched in 2016, crossed 1 billion transactions for the first time in October 2019. While it took three years to reach a billion transactions in a month, the next billion came in just a year.

Digital payments, especially UPI, saw increased adoption in 2020 due to the Covid-19 pandemic. Notwithstanding the minor blip in the initial months of the Covid-19 pandemic, where transaction volume and value dipped, the recovery was fast and NPCI's payment platforms namely UPI, Immediate Payment Service (IMPS), and others recorded fresh highs in the following months aided by aversion towards cash usage as well as card usage by the general public.

In January, Immediate Payments Service (IMPS) declined by 2.5 per cent in transaction count at 346.55 million, from 355.69 million transaction in December 2020, while value shed 1.38 per cent in the same period. However, year-on-year the transaction count grew 33.5 per cent. Bharat Bill Payment System recorded 27.24 million transactions in January worth Rs 4,051.92 crore. It had recorded 26.22 million transactions in December, worth Rs 3,962.76 crore. And, in November, it recorded 23.93 million transactions worth Rs 3,713.21 crore.


Similarly, NPCI’s NETC-operated FASTag recorded 148.56 million transactions worth Rs 2,397.84 crore in January 2021. In December 2020, it had reported 138.41 million transactions worth Rs 2,303.79 crore, while in November, it had recorded 124.88 million transactions worth Rs 2,102.02 crore.

In the recently released booklet named “Payments and Settlement Systems in India” the RBI said, the acceptance and growth of has been exponential over the years. From 4.98 billion transactions with a value of Rs 96 trillion in FY11, have grown to 16.23 billion transactions with a value of Rs 3,435 trillion in FY20. This represents a compound annual growth rate (CAGR) of 12.54 per cent and 43 per cent in terms of volume and value, respectively.

Looking at the impressive growth in digital payments, in the Union Budget of 2021-22, the finance minister provided Rs 1,500 crore that will be used to promote digital modes of payment to give further boost to digital transactions.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, February 02 2021. 18:03 IST