Page 44 - Banking Finance June 2023

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resources. NPCI called this feature UPI Lite. It can scan QR billion) transactions in August with a market share of 45.94%
code without the need of an internet connection. In phase and 34.45% respectively in the UPI payment ecosystem
1, UPI Lite will process the debit transaction offline while while Paytm took 11.94% share with Rs. 387.85 million
the credit will happen when the device goes online. But the transaction.
final goal is to achieve both credit and debit transaction
through offline mode. The upper limit of UPI Lite On-Device From the financial year 2015-21, the domestic retail
wallet is Rs. 2,000. Additional factor authentication or UPI payment by value on UPI grew at 18% at a compound
AutoPay feature will be used to securely load the desirable annual growth rate (CAGR) while between 2017 and 2021,
amount. the collective payment on all forms of UPI grew at 400%
CAGR. In the financial year 2021, Rs. 41 trillion (short scale)
Supported banks worth of money was exchanged on the UPI platform that is
2.8 times the value of debit and credit card payment at
The website of National Payments Corporation of India
point of sale (POS) terminals and 20 times the value of digital
(NPCI) lists the banks that facilitate UPI. Banks here are
wallet and prepaid instruments in India.
termed as Payment Service Providers (PSP) - listed with their
UPI application and handle - and issuers. PSP includes those
UPI registered 355 crore (3.55 billion) transactions in August
banks which have their own mobile application to facilitate
2021, showing 9.56% growth from the previous month. In
transaction and issuers include banks which don't have their
terms of value, Rs. 6.39 lakh crore worth of money was
payments interface and rely on third-party software for
transacted in August alone. From Rs. 3.2 lakh crore to Rs. 6
transaction using UPI.
lakh crore, the growth in value terms doubled between
September 2020 to July 2021.It had reached an all-time high
e-RUPI
of 3.65 billion transactions worth Rs. 6.54 lakh crore in value
e-RUPI or e`UPI(portmanteau of electronic Rupee and UPI) since inception in the month of September. By now the total
developed in collaboration with Department of Financial transaction for the year 2021 reached Rs. 50 lakh crore.
Services, Ministry of Health and Family Welfare and National
Health Authority. It was introduced from 2 August 2021. e- UPI touched value of Rs. 7.71 lakh crore in October 2021
RUPI is to ensure leak proof delivery of welfare services and which is 56% jump from September. As per NPCI, daily UPI
bypassing middle man to decrease corruption. Private sector payment for the month of October is between Rs. 25,000
can use the service for their owncorporate social crore to Rs. 30,000 crore. Out of all UPI transactions done
responsibility initiative (CSR). e-RUPI is basically e-voucher in the month of October, 54% are Person-to-Person (P2P)
based on QR code or SMS string that can be delivered while 46% were Person-to-Merchant (P2M). UPI reached
through mobile phone.e-RUPI will act as a precursor for $844 billion in value until November 2021. In December, the
future Central bank digital currency (CBDC) that will be total transaction value on UPI reached Rs. 8.27 lakh crore
launched by RBI as it will help in highlighting the gaps within with 99% annual growth rate. The largest share in $2 trillion
the national digital payment infrastructure. of annual digital payment in India comes from UPI.

Financial Software and Systems (FSS) integrated e-RUPI on
1 December 2021 for financially under-served segments of
the society.Government of Karnataka partnered with NPCI
to provide student scholarship through e-RUPI which can
even be received on feature phones.

As of July 2021, UPI registered 43.25 crore (432.5 million)
transactions that accounted for Rs. 56,734.5 crore with
highest average daily transaction of approximately 10 crore
(100 million) that is double the amount from July 2020. Till
August 2021, UPI forms 10% of all retail payment in
India.PhonePe and Google Pay both recorded 1 billion (1

40 | 2023 | JUNE | BANKING FINANCE