The Unified Payments Interface (UPI)-based transactions hit 8.03 billion in January, a substantial increase from the 7.82 billion transactions recorded in December 2022. According to the data by the National Payments Corporation of India (NPCI), the value of transactions hit nearly Rs 13 trillion in January. The volume of transactions was 7.8 billion, and value was Rs 12.8 trillion in December.

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This milestone proves that the country is now firmly on the path to becoming a digital-first economy and is a testament to the growing acceptance of digital payments in India. "This is especially true for the populace in rural and semi-urban areas, which have embraced digital payment systems quickly. As highlighted in the 2023 Union Budget, digital payments have gained a wider acceptance with UPI clocking 7,400 crore digital payments worth Rs 126 lakh crore in 2022," said Dilip Modi, Founder, Spice Money.

"The UPI has played an important role in driving financial inclusion to the last mile. In addition, the government`s push toward digital payments has also been a major factor in the growth of UPI transactions," Modi added. In a major relief for some third-party digital payments players, the NPCI last week said it is extending the UPI volume cap rules deadline till December 31, 2024.
The NPCI initially planned to enforce the UPI market cap rules in January 2021, but delayed it several times.