India's digital payments boom: UPI's remarkable growth

External Affairs Minister S. Jaishankar commended India's substantial progress in digital payments, highlighting that the country conducts transactions totaling Rs 120 crore monthly through the Unified Payments Interface (UPI). This figure, he noted, far surpasses the United States' annual digital transaction amount of only Rs 40 crore.

Significant advancement in digital transactions

UPI, a system introduced on April 11, 2016, by former RBI governor Raghuram Rajan, consolidates multiple bank accounts into a single mobile application. It seamlessly integrates various banking features, facilitating fund transfers and merchant payments through a unified platform.

RBI Governor Shaktikanta Das announced a proposal to enable cash deposits in cash deposit machines (CDMs) through UPI. Currently, cash deposits in CDMs primarily utilize debit cards. This move aims to enhance user convenience and promote digital payments for small-value transactions.

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Expanding access to CBDC wallets

Additionally, the RBI plans to broaden access to Central Bank Digital Currency (CBDC) wallets to a wider customer base. Non-bank payment system operators will be allowed to offer CBDC wallets, expanding the reach of digital currency options.

India's UPI services have transcended borders, extending to Sri Lanka, Mauritius, and Nepal. This expansion indicates the increasing influence and acceptance of Indian digital payment solutions beyond the nation's boundaries.

Jaishankar's remarks underscore India's commitment to promoting a cashless economy and its notable achievements in digital financial transactions. The UPI system's success and growing international usage demonstrate India's technological prowess and innovation in the digital payments sector.

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