Consummated Performance of Unified Payments Interface (UPI) In India During Pre and Post Pandemic Period

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D. Saritha, I. Anand Pawar

Abstract

The Unified Payment Interface (UPI) is a rapid real-time payment system, developed by the National Payments Corporation of India (NPCI), designed to enhance the efficiency of banking services. UPI facilitates inter-bank transactions for both peer-to-peer (P2P) and person-to-merchant (P2M) transactions. With the convenience of mobile devices, funds can be swiftly and instantly transferred between bank accounts, requiring only the registration of a mobile number with the associated bank account. As of November 2022, UPI boasts more than 300 million monthly active users in India. Notably, the share of UPI transactions in the total volume of digital transactions surged to 55% in 2020-21, with an average transaction value of Rs. 1,849, a substantial increase from the 23% recorded in 2018-19. UPI has emerged as a pivotal digital payment tool within the Indian financial system, catalyzing transformative changes in the banking landscape. In light of this context, this study provides an overview of the growth and development of UPI payments in India. It aims to identify the various applications of UPI payments and assess the performance of UPI transactions during the pre and post-pandemic periods using descriptive statistics and secondary data.The study found that i) There has been remarkable growth and an increase in UPI usage during both the pre and post-pandemic periods. ii) A significant difference exists in the number of banks actively participating in UPI before and after the pandemic. iii) There is a notable disparity in the volume and value of UPI transactions before and after the pandemic, signifying its continued expansion. Furthermore, UPI's global appeal is expanding, with cross-border transactions gaining momentum. This increase in UPI adoption not only lowers the cost of fund transfers and remittance payments but also extends its reach to international markets, including Nepal, BENELUX countries, Singapore, France, Malaysia, UAE, and the UK.

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How to Cite
D. Saritha, I. Anand Pawar. (2023). Consummated Performance of Unified Payments Interface (UPI) In India During Pre and Post Pandemic Period. European Economic Letters (EEL), 13(4), 1124–1133. Retrieved from https://www.eelet.org.uk/index.php/journal/article/view/716
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