Digital transactions in the increasing path between 2021 and 2024. UPI emerges with key share in the digital payments with 300 percent increase. Recent RBI Report also says, Cash usage in India is significant but steadily declining.
In recent years, significant growth has been observed in retail digital payments, Since UPI launched in 2016. Digital Payments experienced tremendous growth and acceptance from the users. Due to its nature of easy accessibility, convenience and ease of doing payment.
The October Bulletin of RBI mentioned the concept of Cash Usage Indicator for India. Which is designed by Pradip Bhuyan and analyses the use of cash as a mode of payment in India.
UPI transactions has achieved above 50% growth in every year both in volume and value. The average transaction amount for UPI is above Rs 1500, with slight decline from 2021’s average Rs 1800. It denotes the increasing trend of small amount payments increasing.
This Report also says person to merchant(businesses) payments in UPI transactions increased from 16.6 percent in April 2021 to 26.2 per cent in March 2024 in value. In volume, the share increased from 45.2 percent to 61.7 percent during the same period. The overall Person to Merchant Payments in all modes increased five-folds.
