UPI's evolution in 2024: New features, global reach, and more
What's the story
The Unified Payments Interface (UPI) has solidified its dominance in 2024, transforming the way India handles digital transactions. This growth is bolstered by recent feature expansions, including higher transaction limits and UPI-enabled ATMs. Meanwhile, UPI is also expanding internationally, paving the way for a global shift toward simpler, faster, and more secure payments. Take a look at how UPI has transformed the digital payments sector this year.
Record-breaking performance
UPI set a new record on Diwali
UPI became the most preferred digital payment method in India, crossing 10 billion merchant transactions this October, marking a whopping 53% year-on-year (YoY) growth. According to the National Payments Corporation of India (NPCI), UPI recorded a total of 16.5 billion transactions in October. On Diwali (October 31), UPI set a new record by processing 644 million transactions in a day—highest ever recorded for a single day. In November, UPI processed 15.48 billion transactions, demonstrating 38% YoY growth in transaction volume.
Global acceptance
Already operational in seven countries
UPI has expanded beyond India's borders, now operating in countries like Sri Lanka, Mauritius, France, the UAE, Singapore, Bhutan, and Nepal. Furthermore, reports indicate that the NPCI International Payments Limited (NIPL), a wholly owned subsidiary of NPCI, is in discussions with around 20 nations across Africa and South America to implement UPI-like payment system.
Recently added
Cash deposits at ATMs using UPI apps
Thanks to UPI, customers can now deposit cash at bank ATMs without the need for debit or physical cards. The innovative UPI Interoperable Cash Deposit (UPI-ICD) feature was launched by RBI Deputy Governor T. Rabi Shankar at the Global Fintech Fest 2024 in Mumbai on August 29. According to NPCI, UPI-ICD enables cash deposits using a customer's mobile number linked to UPI, virtual payment addresses (VPA), and account IFSCs, allowing deposits into their own or other bank accounts.
UPI Circle
UPI Circle: Lets others use your account for payments
Earlier this year, NPCI introduced a new feature called "UPI Circle," enabling users to authorize others to transact from their UPI accounts with set limits. This feature allows secondary users, such as family members like senior citizens, spouses, or children, to make transactions without linking their own bank accounts to UPI. Each primary user can delegate access to up to five secondary users, while secondary users can accept delegation from only one primary user, streamlining shared account usage within families.
Higher limits
Increase in transaction limit to up to ₹5 lakh
In September, NPCI raised the transaction limit for UPI payments in three specific categories from ₹1 lakh to ₹5 lakh. This higher limit applies to tax payments, payments to hospitals and educational institutions, and investments in IPOs and RBI retail direct schemes. The increase simplifies and encourages the use of UPI for high-value transactions, particularly benefiting millions of taxpayers in India by enabling seamless tax payments via UPI.
UPI Lite
Auto top-up for UPI Lite
UPI Lite users now benefit from an auto top-up feature, which automatically replenishes their balance once it falls below a specified limit. This update eliminates the need for manual top-ups, ensuring uninterrupted digital transactions. Previously, users had to manually transfer funds from their bank accounts to maintain their wallet balance for payments. These features have been pivotal in accelerating the adoption of digital payments in India through UPI.