Context:
Unified Payments Interface (UPI) continued to dominate India’s digital payments landscape in FY25, recording a 41.7% annual growth in volume and expanding its share of total digital transactions to 83.4%, up from 79.4% in FY24.
Regulatory and Policy Developments
- Survey on Digital Payments:
- RBI to launch a nationwide survey to understand user preferences, behaviour, and challenges.
- Digital Payments Intelligence Platform (DPIP):
- RBIH (Reserve Bank Innovation Hub) is building a prototype in collaboration with 5–10 banks.
- Goal: Detect and mitigate frauds, improve ecosystem trust.
- Authorisations Granted by RBI in FY25:
- 26 Online Payment Aggregators (PAs)
- 5 Cross-Border Payment Aggregators (PA-CB)
- 11 Non-bank PPI issuers
- 1 TReDS platform
- 84 On-site inspections of payment system operators conducted.
UPI Internationalization
- Led by NPCI International Payments Ltd (NIPL).
- Indian UPI apps now accepted in:
- France, Nepal, Bhutan, Singapore, Sri Lanka, Mauritius, UAE via QR codes.
- More international tie-ups expected in FY26.
- Goal: Expand UPI presence to more countries by FY29.
Significance
- Reflects India’s global leadership in real-time digital payments.
- Enhances financial inclusion, payment system efficiency, and consumer convenience.
- Strong regulatory oversight continues to strengthen trust and security in digital payments.
UPSC PYQ
Consider the following countries:
I. United Arab Emirates
II. France
III. Germany
IV. Singapore
V. Bangladesh
How many countries amongst the above there other than India where international merchant payments are accepted under UPI?
(a) Only two)
(b) Only three
(c) Only four
(d) All the five
