India’s UPI transactions way more than US digital payments, says Jaishankar | Finance News

External Affairs Minister (EAM) S Jaishankar recently highlighted India’s remarkable progress in digital payments, noting that the country now conducts transactions worth Rs 120 crore per month through the Unified Payments Interface (UPI). In contrast, he pointed out that in the United States, digital transactions amount to only Rs 40 crore per year.

Speaking at an event in Rajasthan’s Bikaner, Jaishankar emphasised, “Today, we do cashless payments through UPI. We have transactions worth Rs 120 crore in a month. While the US makes digital transactions worth Rs 40 crore in a year. You should see how we have progressed in some areas and the world commends that.”

The UPI is a platform that consolidates various bank accounts into a unified mobile application. Launched on April 11, 2016, by the former governor of the Reserve Bank of India (RBI), Raghuram Rajan, this initiative integrates multiple banking functionalities, facilitating effortless fund transfers and convenient merchant transactions.

In a recent proposal, the RBI announced its plan to allow users to deposit cash in cash deposit machines (CDMs) through the UPI. 

Announcing the monetary policy outlook for the current fiscal year, RBI Governor Shaktikanta Das stated, “Deposit of cash through cash deposit machines (CDMs) is primarily being done through the use of debit cards. Given the experience gained from cardless cash withdrawal using UPI at the ATMs, it is now proposed to facilitate deposit of cash in CDMs using UPI.”

He further added, “At present, UPI payments from Prepaid Payment Instruments (PPIs) can be made only by using the web or mobile app provided by the PPI issuer. It is now proposed to permit the use of third-party UPI apps for making UPI payments from PPI wallets. This will further enhance customer convenience and boost adoption of digital payments for small value transactions.”

Das also suggested expanding the accessibility of Central Bank Digital Currency (CBDC) to a wider range of customers by enabling non-bank payment system operators to provide CBDC wallets.

Additionally, India’s UPI services have also been introduced in Sri Lanka, Mauritius, and Nepal.

First Published: Apr 11 2024 | 3:57 PM IST