UPI: Unified Payments Interface (UPI) has reached a significant milestone in India’s digital payments landscape. In December 2024, UPI recorded unprecedented figures in both transaction volume and value, highlighting its growing acceptance among users. The total number of UPI transactions soared to 16.73 billion in December 2024, marking the highest level since its inception in April 2016.
Concurrently, the transaction value rose by 8 percent to Rs 23.25 trillion, up from Rs 21.55 trillion in November 2024. Data from the National Payments Corporation of India (NPCI) indicates that the overall UPI transactions for the year 2024 totaled 172 billion, reflecting a 46 percent increase from 118 billion in 2023. Daily transactions also saw a rise, reaching 540 million in December 2024, compared to 516 million in November.
Additionally, the daily transaction value climbed to Rs 74,990 crore in December, surpassing Rs 71,840 crore in November. When compared to December 2023, UPI transactions in December 2024 exhibited a 39 percent increase in volume and a 28 percent increase in value, underscoring the expanding user base and popularity of the platform. Furthermore, FASTag transactions also experienced growth, with a 6 percent rise to 38.2 million in December, up from 35.9 million in November, and a 9 percent increase in transaction value to Rs 6,642 crore.
RBI rule for UPI
The Reserve Bank of India (RBI) has announced an increase in the transaction limit for UPI123Pay, a UPI service designed for feature phone users. The deadline for this adjustment is set for December 31, 2024. If this deadline remains unchanged, starting January 1, users will be able to conduct transactions of up to Rs 10,000 per day through UPI123Pay, an increase from the current limit of Rs 5,000.
This service will allow users to transfer up to Rs 10,000 to other UPI users. However, there are no modifications to the transaction limits for UPI payments made via smartphone applications such as PhonePe, Paytm, and Google Pay, where users can still transact up to Rs 1 lakh daily. Notably, the limit for transactions related to medical emergencies has been raised to Rs 5 lakh.