Prime Minister Narendra Modi on Tuesday marked a decade of the Unified Payments Interface (UPI) operating in India, describing the milestone as a major turning point in the nation's digital payments landscape. Taking to social media platform X, the Prime Minister encouraged citizens to share their personal experiences regarding how UPI has impacted their daily lives, noting that its scale and reach are matters of national pride.
The real-time payment system was originally launched on a pilot basis in April 2016 involving 21 member banks, before being officially rolled out to the public in August 2016. Developed by the National Payments Corporation of India (NPCI) under the regulatory oversight of the Reserve Bank of India (RBI), the platform integrates multiple banking services, fund transfers, and merchant payments into a single mobile application. The BHIM application was subsequently introduced to the ecosystem in December 2016.
Data released by the Union Finance Ministry highlights substantial expansion in usage over the ten-year period. Annual transaction volumes grew from 1.78 crore transactions in the 2016-17 financial year to over 24,162 crore transactions projected for the 2025-26 financial year, marking an approximately 13,000-fold increase. Concurrently, the total transaction value escalated from Rs 0.07 lakh crore in FY 2016-17 to roughly Rs 314 lakh crore in FY 2025-26, representing a more than 4,000-fold rise.
Technically, the infrastructure relies on two-factor authentication and end-to-end encryption to secure transactions across participating banks and payment service providers. In addition to domestic adoption, the payment platform has expanded internationally and is currently accepted in 11 countries, with Greece and the Maldives being the latest to integrate the system.
Alongside the growth of the network, regulatory adjustments have accompanied the expansion. The government amended the Payment and Settlement Systems Act (PSS Act) to introduce Merchant Discount Rate (MDR) charges for merchants, while maintaining zero charges for consumers executing payments.
"The ten-year journey of UPI demonstrates how a robust public digital infrastructure can fundamentally transform an economy's transactional behavior. The scale from a few crore transactions to over 24,000 crore transactions highlights the massive scalability achieved by the NPCI and regulatory bodies. For businesses, the integration of secure real-time payments has streamlined operations and widened customer reach, while its ongoing international expansion signals growing global recognition of India's fintech capabilities." — Dr. Shishir Gupta, Founder & CEO, StartupLanes
