UPI Transactions crosses 2 billion mark 

  • IASbaba
  • November 5, 2020
  • 0
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UPI Transactions crosses 2 billion mark 

Part of: GS Prelims and GS-III – Economy

In news

  • Recently UPI transactions were in the news.
  • According to the data released by the National Payments Corporation of India (NPCI), the total number of transactions conducted on BHIM-UPI crossed the 2 billion mark in a month in October 2020.

Key takeaways 

  • UPI is currently the biggest among the NPCI operated systems. 
  • Other systems include National Automated Clearing House (NACH), Immediate Payment Service (IMPS), Aadhaar enabled Payment System (AePS), Bharat Bill Payment System (BBPS), RuPay etc.
  • Digital transactions were already increasing but the lockdown imposed due to Covid-19 provided a thrust
  • Also, India’s digital payments industry is likely to grow from Rs. 2,153 trillion to Rs. 7,092 trillion by 2025.

Important value additions 

National Payments Corporation of India (NPCI) 

  • NPCI is an umbrella organisation for operating retail payments and settlement systems in India. 
  • It is an initiative of RBI and Indian Banks’ Association (IBA) under Payment and Settlement Systems Act, 2007.
  • It is a “Not for Profit” Company under the provisions of Section 25 of Companies Act 1956 (now Section 8 of Companies Act 2013). 
  • Objective: To provide infrastructure to the entire Banking system in India for physical as well as electronic payment and settlement systems.

Do you know? 

Challenges of the digital transactions

  • Cybercrime. E.g. Malicious Software Cerberus
  • Fraudulent claims, chargebacks, fake buyer accounts, promotion/coupon abuse, account takeover, identity theft, etc.

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