UPI stands for Unified Payment Interface. It is an instant real-time payment system that facilitates inter-bank peer-to-peer transactions.
The National Payment Corporation of India (NPCI), the countryтАЩs regulatory authority for retail digital payments launched UPI in the year 2016. The NCPI was an initiative taken by RBI with the Indian Bank Association to form the creator of a robust payment and settlement infrastructure.
UPI deals with multiple banks and settles the transaction immediately. It was initially person-to-person translations but then shifted towards person-to-merchant transactions in recent years.
The success story of UPI in India made a major contribution to ensuring the digital payment Revolution in the country. India has recorded phenomenal growth during the pandemic years 2021 and December 2022.
In December 2022, it crossed 7.82 billion transactions worth Rs.12.82 trillion.
As per NPCI in the calendar 2022, UPI processed over 74 billion transactions worth rupees 125.94 trillion.
UPI has grown rapidly in the last 5 years and more than 40% of all retail digital payments in India happen through UPI.
And now the RBI has launched CBDC which is the digital rupee. A person with any phone can make transactions with it. It is not necessary for it to be a smartphone. It is successful in wholesale transactions. It is now being tested in phases for retail purposes, if successful then, will be launched in the entire country.
References:
https://byjus.com/free-ias-prep/unified-payment-interface-upi/
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