New Year has been indeed new for India! The crawling steps towards building a cashless India seems to be finally turning into reality with steady actions to succeed it. There have been a lot of ups and downs throughout the process since the present Central Government started working towards it. Right from the top most business tycoons to a local retailer, each one has been lending a hand of assistance.
According to the data released by National Payments Corporation of India (NPCI), “The value of monthly transactions made using the Unified Payments Interface (UPI) crossed the Rs 1 Lakh Crore mark for the first time in December 2018”.
As per observed by the reports, The UPI channel recorded 620 million transactions worth `1.02 lakh crore, up from 525 million transactions worth `82,232 crore in November and 145 million transactions worth `13,144 crore in December 2017.
The step that once seemed impossible, now can be seen with a ray of hopes on a higher standard. As people have now started understanding the importance of Cashless transactions and its benefits, the vision towards the growth is much more clear compared to the initial days.
Launched in August 2016, UPI is a bank account-to-bank account payment feature that allows money to be transferred using details no more than a phone number. Earlier this year, NPCI launched UPI 2.0 – an upgraded version of its UPI service, which will allow them to be double sure with the transactions made and make payments without the fear of ending up into wrong hands.
The new update allows the users to digitally view the invoice from the merchant before making the payment. This way the customer can ascertain if the invoice is received from the correct merchant and whether the amount is correctly charged. If the upgraded version of UPI is able to meet its stated goals, there is a possibility that more offline merchants may switch to UPI-based payments from POS machines.
State Bank of India and HDFC Bank have already begun to equip offline merchants with machines which enable acceptance of card payments, UPI payments as well as payments initiated through the respective banks’ wallets. In its presentation for the quarter ended September 2018, SBI said that the share of UPI and Yono (the bank’s app) transactions in all transactions recorded by the bank rose to 8.7% from 0.8% at the end of September 2017.