The Unified Payments Interface (UPI) system has made the life of Indians very easy. Post the launch of UPI; users didn’t have to worry about recharging their e-wallets time and again. The UPI allowed users to transact directly from their bank accounts to another person’s bank account. According to a PTI report, multiple nations now want to learn from India and replicate the UPI model. Especially in the pandemic, when people couldn’t step out of their homes or didn’t want to transact in cash, applications that support UPI payments saw major growth.
Transactions Worth Rs 41 Lakh Crore Recorded Through UPI in One Year
During the FY21 (2020-21), when the pandemic kicked in, UPI transactions witnessed a sharp increase in volume. The report highlights that transactions worth Rs 41 lakh crore were made during FY21 through UPI alone. Debashish Panda, Financial Services Secretary, said that India had become a role model for other countries through its UPI system and the other nations want to adopt the system as well. For the unaware, the Finance Minister of India, Nirmala Sitharaman, earlier this week launched the BHIM-UPI QR based payments system in Bhutan as well. Bhutan is one such destination where plenty of tourists go every year. In view of that, the recently launched BHIM UPI system in the country stands to benefit over 2,00,000 users from India who visit Bhutan every year. The UPI system has further helped the Indian economy a lot during the time of the pandemic. The cashless transactions could still happen, and that too in real-time. One of the best things about the UPI is that it doesn’t charge users for any transaction. Major payment applications and banks within India all support the UPI system of payments. The UPI system is further expected to grow as the adoption rate of smartphones grow further in India.
