August witnessed an exponential rise in transactions under the Unified Payments Interface (UPI) with the 300 million mark being crossed in what counts as a significant development for the realisation of a cashless economy.
A growth of 32 per cent in the number of transactions under UPI was observed in August compared to the figures registered in July. Added to the increase in the number of transactions, the value of transactions over UPI has also soared from Rs. 45, 845 crores in July to Rs. 54, 212 crores in August.
The sudden jump in UPI numbers follows the unveiling of UPI 2.0 which was launched by Reserve Bank of India (RBI) Governor Urjit Patel. A key feature of UPI 2.0 is the provision for allowing customers to use the facility of overdraft for the purposes of making payments to merchants.
Also, provision has been made for paying merchants after checking the invoice issued. The National Payments Corporation of India (NPCI) which is the overarching body regulating retail payments has also praised the UPI for heralding easier cashless transactions.