Over 70% of total digital payment transactions in FY 2023-24 UPI based

The "Incentive Scheme for the promotion of RuPay Debit Cards and low value BHIM-UPI transactions Person to merchant (P2M)" has significantly contributed to the growth of digital payments in the country. The total digital payment transactions have grown from 8,839 crore in FY 2021-22 to 18,737 crore in FY 2023-24, with a CAGR of 46%. This growth has been driven by Unified Payment Interface (UPI), which grew at a CAGR of 69%, increasing from 4,597 crore transactions in FY 2021-22 to 13,116 crore transactions in FY 2023-24.

UPI has captured around 70% of total digital payment transactions in FY 2023-24. Further, the digital payment infrastructure (i.e. QR code and POS terminals), onboarding of new merchants, and the Third Party App Providers (TPAPs) have also grown substantially during the scheme period.

The Government has set up a DIGIDHAN mission to promote digital payments and strengthen the digital payments ecosystem in the country. An incentive scheme has been implemented since FY 2021-22 to incentivise the banks and other ecosystem partners for promotion of digital payments including promotion of UPI. While designing the scheme, consultations were held with the relevant stakeholders including the banks. A dedicated Incentive Scheme for Banks (ISB) portal has also been developed to create awareness and seamless data collection. As a result, the number of banks offering digital payments including UPI payments have increased from 216 in FY 2021-22 to 572 in FY 2023-24.

This information was given by Minister of State In the Ministry of Finance, Shri Pankaj Chaudhary in a written reply to a question in Rajya Sabha.

Incentive scheme expands UPI-led digital payments under DIGIDHAN mission, increasing bank participation and merchant onboarding nationwide. The Incentive Scheme for promotion of RuPay Debit Cards and low value BHIM UPI P2M transactions, supported by the DIGIDHAN mission and an Incentive Scheme for Banks (ISB) portal, was implemented following stakeholder consultations to incentivise banks, Third Party App Providers and merchant onboarding, expand QR/POS acceptance infrastructure, and thereby drive substantial growth in UPI-led digital payment transactions during the scheme period.