The Reserve Bank of India on Thursday stated that while August recorded 1.61 billion UPI transactions valued at Rs. 2.98 lakh crores, September jumped to a record high 1.7 billion UPI transactions
World has been severely hit by a deadly pandemic, the COVID-19. The digital payments system in India boomed during and after the demonitization days in 2016 and India realized the true ease of digital payments. It is to be noted and if you remember, digital payments became a great mode of help when ATMs were not yet populated with currency notes. Even when the ATM withdrawals were normal, people found it difficult to tender change for Rs.2000 notes. The digital transactions through online payment platforms such as Paytm, PhonePe and payment gateways like ccAvenue, Payumoney, etc saw a steep rise in online transactions. The digital payments mode became a trend after that and there has been no looking back since then. The Government of India launched the BHIM app later to boost UPI based transactions in the country.
The second record jump came amid the COVID19 after The government launched Unified Payments Interface or the UPI for a more secure, easy and faster way of making payments.
The digital payments interface has seen a huge surge since lockdown was imposed in India starting March 25, 2020. The inability to step out during lockdown has actually forced consumers and B2B businesses as well to transact online. Given that October to December is a festive season in India with many holidays in between, the digital transactions will further see a surge by December 2020.