UPI powers multiple bank accounts into a single mobile application. (Representational)
The massive surge in UPI transactions indicates the Indians' "collective resolve to embrace new technologies", Prime Minister Narendra Modi said today.
The Prime Minister shared on Twitter a Business Standard report that said the UPI transactions in India in July touched the six-billion mark, the highest since its inception in 2016.
"This is an outstanding accomplishment. It indicates the collective resolve of the people of India to embrace new technologies and make the economy cleaner. Digital payments were particularly helpful during the COVID-19 pandemic," he said in an accompanying post.
According to the National Payments Corporation of India, UPI or Unified Payments Interface is a system that powers multiple bank accounts into a single mobile application, merging several banking features, seamless fund routing and merchant payments into one hood.
UPI's pilot launch was on April 11, 2016 by then Reserve Bank of India Governor Raghuram Rajan. Banks started uploading their UPI apps from August that year. Two months later, the government announced the demonetisation of Rs 500 and Rs 1,000 notes and millions queued up outside banks to withdraw their money.
UPI payments started picking up as people short of cash tried to minimise its use as much as possible.
UPI payments in the country got another boost during the Covid pandemic as people started preferring contactless transactions out of a fear of infection.