upi: UPI transactions hit a new record in December 2021

By on January 1, 2022 0
MUMBAI: Transactions under Unified Payments Interface hit a record high of 456 crore in December 2021, surpassing the previous high of 421 crore seen in October 2021. Total transaction value in December was also a new high at Rs 8.27 lakh crore .
According to bankers, the surge in transactions reflects the growing adoption as well as the rise in economic activity in December following the sharp drop in second wave cases.
UPI transactions hit a record high in October thanks to festival season shopping and online sales by e-commerce companies. However, after the festival peak, there was a marginal drop in November. The month of December marks a 9% in the number of transactions and a 7.6% increase in value. Compared to December 2020 transactions, UPI usage in December 2021 doubled in both value and volume.
During the 2021 schedule, there were 3,800 UPI crore transactions amounting to Rs 73 lakh crore. The National Payments Corporation of India, which operates the UPI platform, expects the volume to reach one billion per day when the Reserve Bank of India operationalizes the use of the UPI wallet for low value offline transactions. This will allow payments to be made without putting pressure on the central banking system of banks.
UPI transactions were already the predominant electronic payment method in the country and now exceed the number of card transactions by almost eight times. Unlike credit cards which are reserved for merchant payments, the UPI figures reflect both the increase in peer-to-peer transfers as well as merchant payments.
As UPI is an account-to-account transfer mechanism, bankers say they will need to rethink their basic banking architecture to handle such a large volume of transactions on a daily basis. On the evening of December 31, there were record transactions on UPI due to customer payments on food ordering apps.

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