BENGALURU: United Payment Interface (UPI), India’s most popular digital payment mode, hit an all-time high in June month at 2.8 billion transactions worth Rs 5,47,373 crore, a 10-11% jump in both value and volume terms month-on-month, as per the data released by National Payments Corporation of India (NPCI) UPI had clocked 2.53 billion transactions for May month, down from 2.73 billlion for March, 2021.
In value terms, UPI transactions for May month stood at Rs 4.93 lakh.
A surge in UPI payments after the lifting of lockdowns indicates the likelihood of business activities resuming during June. For the April-May months, UPI had seen a 2.5% decline in value terms.
The various other modes of digital payments including Bharat Bill Payment System (BBPS), National Electronic Toll Collection (NETC), Aadhaar-enabled Payment System (AePS), and Immediate Payment Service (IMPS) also showed significant growth for June month.
BBPS payments transactions grew by 16% month-on-month at 45.47 million, NETC by 35.3% to 157 million, IMPS by 8% to touch 303.7 million whereas AePs rose marginally at 87.5 million for June.
“The drop in total digital payments during FY21 is attributable to slump in business activities due to challenges posed by COVId which led to economic contraction for several quarters. However, we see economic activities back on track this year with a rebound in GDP which will increase the payment transactions this financial year,” Anil Gupta, vice president Sector Head, ICRA said.
As per the RBI data, digital payments had witnessed a 13.4% YoY drop in value terms, as per RBI Annual Report, 2020-21, led by lower growth in Real Time Gross Settlement (RTGS) system and a decrease in transactions of