Analyzing the Impact and Evolution of the UPI...

Analyzing the Impact and Evolution of the UPI: A Case Study of India's Digital Payment Ecosystem

Author Name : Annu Kumari

ABSTRACT India's financial landscape has transformed over the past decade, driven by digital payment technologies, notably the Unified Payments Interface (UPI), launched by the National Payments Corporation of India (NPCI) in 2016. UPI simplifies digital transactions, enabling real-time interbank payments through mobile devices. Its success is due to its ease of use, robust security, and support from the Reserve Bank of India and government initiatives.UPI benefits consumers by providing a quick, secure payment method, reducing reliance on cash. For businesses, particularly SMEs, it lowers transaction costs and speeds up payment processes. Banks benefit from increased transaction volumes and reduced cash handling expenses. UPI also significantly contributes to financial inclusion, especially in rural and semi-urban areas. By February 2023, UPI transactions reached ₹125.1 lakh crore, underscoring its widespread adoption. UPI has reshaped India's payment ecosystem, promoting financial inclusion and economic growth. Its influence is set to grow, cementing its role in India's digital economy