Digital transfers by value have doubled in the ongoing fiscal.
Transactions worth $1.09 trillion, or Rs 83.45 lakh crore, were recorded on the unified payments interface as on March 29, according to data released by National Payments Corporation of India. That compares with Rs 41 lakh crore recorded in FY21.
In March alone, UPI has recorded more than 500 transactions.
The UPI has been one of the most preferred mobile payment modes in India since its launch in 2016. Reserve Bank of India Governor Shaktikanta Das, at the launch of UPI123 this month, had said UPI could soon record Rs 100 lakh crore worth transactions. UPI123 is focused toward enabling transactions on feature phones.
According to NPCI's assessment, about 50% of the transactions recorded on UPI are worth less than Rs 200 each. High volumes of low-value transactions have led to a rise in failure rates as the current infrastructure is unable to support the flow adequately.
That has prompted NPCI to introduce UPI Lite, a wallet-based approach toward solving the transaction traffic problem. NPCI has asked banks and third-party mobile applications to prepare for a pilot programme for UPI Lite, with a full-fledged launch to follow.
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