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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM64296
Volume:
10 |
5 |
May 2026
Pages:
1-9
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
Department of Commerce
Dr. B. B. Hegde First Grade College, Kundapura
The Unified Payments Interface (UPI), launched in April 2016 by the National Payments Corporation of India (NPCI), has revolutionized India's digital payment ecosystem and emerged as a transformative force in the country's economic landscape. This comprehensive review examines UPI's multifaceted role in India's economy, analyzing its impact on financial inclusion, digital economy growth, formalization of economic activities, transaction cost reduction, GDP contribution, behavioral changes, and India's emergence as a global leader in real-time payments. In October 2024 alone, UPI processed 16.58 billion transactions worth ₹23.49 lakh crores, representing 45% year-on-year growth. By early 2025, monthly transaction volumes exceeded 17 billion, demonstrating sustained momentum. India now accounts for approximately 49% of global real-time payment transactions, underscoring its leadership in digital payment innovation. The system has processed over 150 billion cumulative transactions since inception, fundamentally reshaping how Indians conduct financial transactions.
KEYWORDS
UPI has fundamentally transformed India's economic landscape through multiple interconnected dimensions: 10.1 Primary Achievements Revolutionizing Financial Transactions: UPI has made financial transactions fast, secure, and effortless, processing 16.58 billion monthly transactions worth ₹23.49 lakh crores as of October 2024. The system's 24/7 availability and instant settlement have eliminated traditional banking constraints. Promoting Financial Inclusion: UPI has bridged gaps between banked and unbanked populations, bringing over 500 million users into the digital payment ecosystem. Feature phone support, simplified onboarding, and zero transaction costs have enabled participation from previously excluded populations. Accelerating Digital Economy Growth: UPI has reduced cash dependency, improved transaction efficiency, and enabled e-commerce expansion. The system contributes approximately 1-1.5% to annual GDP growth through efficiency gains and formalization. Formalizing Economic Activities: Digital transaction trails have increased transparency, improved tax compliance, and reduced black money circulation.
[1] Press Information Bureau. (2026). UPI completes 10 glorious years, emerges as world’s largest real-time payments platform, anchoring India’s digital economy. Ministry of Finance, Government of India. Retrieved from PIB Official Release on UPI Milestones [2] Press Information Bureau. (2024). UPI: Revolutionizing Digital Payments in India. Ministry of Finance, Government of India. Retrieved from PIB UPI Digital Payments Report [3] Press Information Bureau. (2024). DFS drives expansion of digital payments in India and abroad. Ministry of Finance, Government of India. Retrieved from DFS Digital Payments Expansion Report [4] Federal Bank. (n.d.). UPI Features and Benefits. Retrieved from Federal Bank Official Website [5] SSRN. (n.d.). Research on UPI’s GDP Impact and Economic Contribution. Retrieved from SSRN Research Papers [6] Systemic Risk Council. (n.d.). India’s UPI System and Global Implications. Retrieved from Systemic Risk Council [7] AU Small Finance Bank. (n.d.). Role of UPI in Digital India. Retrieved from AU Small Finance Bank Official Website [8] Dev, H., Gupta, R., Dharmavaram, S., & Kumar, D. (2024). From Cash to Cashless: UPI's Impact on Spending Behavior Among Indian Users and Prototyping Financially Responsible Interfaces. Retrieved from Research Paper on UPI Spending Behaviour [9] Economic Times. (2026). UPI a key driver of financial inclusion, credit expansion: Economic Survey. Retrieved from Economic Times Article on UPI and Financial Inclusion
Publication Date
5/29/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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The authors declare no conflict of interest related to this research work.
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