The popular digital mode of payment system viz UNIFIED PAYMENT INTERFACE, an instrument launched by RBI, had a good heap in the last few months, however, has not reached the expected target. It is observed that it has fallen short by 35% of its target.
The following chart gives a fair idea about the UPI transactions during last three months:
Volume in millions / Value in crore
|S No||Month||UPI Transactions||UPI Transactions|
The first quarter target of number of transactions, was observed to have fallen short of the target set by finance ministry, by 40 million, according to Payment railroad used to describe the pathways, through which digital payments move, and which is managed by NPCI. Banks not reaching the target in the coming months may end up in Government’s annual goal not being achieved.
Out of 400 billion transaction set by finance ministry for digital transactions, share of UPI is 25 billion. Though the first quarter target has been missed, NPCI authorities feels that they will be able to achieve the target in the coming quarters. BHIM (Bharat Interface for money) is also being promoted aggressively. The Government has taken various initiatives, by easing charges on many digital transactions, also the merchant partners are wooed to accept UPI based payments. Further, merchants like LIC of India, IRCTC, Reliance Digital, Big Bazaar, PVR and Ola, have also been on boarded.
BHIM is having the benefit of being supported by the Government, however, PhonePe is said to be having support of dominant online retailer Flipkart, with its deep pockets and aggressive promotions. Bankers, feel that they would be able to achieve the coming quarters, the targets set.
LET US WAIT AND SEE…