UPI Transactions crosses 2 billion mark
Part of: GS Prelims and GS-III – Economy
- 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.
- 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.