RBI to enable UPI for cash deposit facility, permit third party apps for PPI wallets
Reserve Bank of India Governor Shaktikanta Das on Friday proposed to enable UPI for cash deposit facility.
A recent report suggests that the UPI continues to be the ubiquitous payment choice for the users with the transactions volume increasing from 8.03 billion transactions in January 2023 to 12.02 billion in December 2023.
The ‘India Digital Payments Report’ for H2 2023 by Worldline highlighted that the transaction value exhibited a parallel upward trajectory. It increased from Rs 12.98 trillion in January 2023 to an impressive Rs 18.22 trillion in December 2023.
The volume of UPI transactions in H2 2023 to H2 2022 increased by 56 per cent from 42.09 billion to 65.77 billion, the report said.
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During the same timeframe, the value of transactions increased by 44 per cent from Rs 69.36 trillion to Rs 99.68 trillion, it added.
Further, the report mentioned that the person-to-person (P2P) transactions grew by 34 per cent from 20.25 billion transactions in H2 2022 to 27.04 billion in H2 2023.
Meanwhile, the value of P2P transactions grew from Rs 53.69 trillion to INR 74.24, a 38 per cent increase. P2M transactions volume grew from 21.84 billion to 38.73 billion, a fantastic 77 per cent increase while the value grew from Rs 15.66 trillion to Rs 25.43 trillion, a 62 per cent increase.
For the H2 2022, the average ticket size of all UPI transactions was Rs 1,648 compared to Rs 1,515 in H2 2023, registering an 8 per cent decrease. During the same period, the average ticket size for P2P transactions grew 4 per cent from Rs 2649 to Rs 2745.
The Worldline report further said that during the same period, the average ticket size of P2M transactions fell 9 per cent from Rs 720 to Rs 656.
It further said three UPI apps are dominant in terms of volume and value which are PhonePe, Google Pay, and Paytm.
In December 2023, the three apps accounted for 95.4 per cent of all transactions compared to 94.8 per cent a year before, in terms of transaction volume.
In terms of transaction value, the three accounted for 93 per cent in December 2023 compared to 92.2 per cent in Dec 2022.
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