Unified Payments Interface (UPI) transactions in India have skyrocketed from 92 crore in fiscal year (FY) 2017-18 to 18,587 crore in FY 2024-25, marking a compound annual growth rate (CAGR) of 114 percent, the Parliament was informed on Monday.
The value of UPI transactions also surged from Rs 1.10 lakh crore to Rs 261 lakh crore during the same period. In July, UPI crossed a major milestone, recording over 1,946.79 crore transactions in a single month for the first time, Minister of State for Finance Pankaj Chaudhary said in a written reply to a question in the Lok Sabha.
The total volume of digital payments in the country expanded from 2,071 crore transactions in FY 2017-18 to 22,831 crore in FY 2024-25, growing at a CAGR of 41 percent. The value of these transactions increased from Rs 1,962 lakh crore to Rs 3,509 lakh crore over the same period.
The government and the Reserve Bank of India have introduced multiple reforms to strengthen credit discipline, responsible lending, governance, technological adoption, and the regulation of cooperative banks.
Highlighting reforms in public sector banks (PSBs), the minister pointed to the arms-length selection of top management through the Financial Services Institutions Bureau, appointment of non-executive chairpersons in nationalized banks, widening the talent pool, and performance-based extensions for managing directors.
The Enhanced Access and Service Excellence (EASE) reforms have enabled measurable progress across governance, risk management, technology-driven banking, and human resources in PSBs.
To boost credit flow to Micro, Small and Medium Enterprises (MSMEs), schemes like the Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME) and the Emergency Credit Line Guarantee Scheme (ECLGS) have been implemented. Following the Union Budget 2024-25, a New Credit Assessment Model for MSMEs was launched, leveraging digitally verifiable data and automated loan appraisal processes.
Additionally, the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), overseen by the Ministry of MSME, provides up to 85 percent guarantee cover on loans up to Rs 10 crore extended by eligible lending institutions to micro and small enterprises.
-IANS
