Recently, India's outstanding development in digital payments was highlighted by External Affairs Minister (EAM) S Jaishankar. He said that the nation now uses the Unified Payments Interface (UPI) to make transactions worth Rs 120 crore each month. He contrasted this by pointing out that digital transactions in the US barely total Rs 40 crore annually.
Speaking at a gathering in Bikaner, Rajasthan, Jaishankar underlined, "We use UPI to make cashless payments nowadays. In a month, we do transactions totaling Rs 120 crore. In contrast, the US conducts yearly digital transactions valued at Rs 40 crore. You should see how far we have come in certain areas, and how well that has been received by the globe."
A technology called UPI allows many bank accounts to be combined into a single mobile application. This project, which was introduced on April 11, 2016, by Raghuram Rajan, the former governor of the Reserve Bank of India (RBI), combines many banking features to make merchant transactions and fund transfers simple.
The RBI has revealed its intention to enable users to make cash deposits using the UPI at cash deposit machines (CDMs).
RBI Governor Shaktikanta Das said, "Debit cards are the primary method of cash deposits through cash deposit machines (CDMs) when announcing the monetary policy outlook for the current fiscal year. It is now suggested to make it easier for people to deposit cash into CDMs using UPI in light of the experience obtained from cardless cash withdrawals using UPI at ATMs."
"At this time, UPI payments from Prepaid Payment Instruments (PPIs) can only be made through the PPI issuer's website or mobile app," he continued. It is now being suggested to allow UPI payments using PPI wallets via third-party UPI applications. This will increase customer convenience even further and encourage small-value transaction adoption of digital payments."
Das has proposed allowing non-bank payment system providers to offer CBDC wallets, therefore extending the reach of Central Bank Digital Currency (CBDC) to a larger consumer base.
Nepal, Mauritius, and Sri Lanka have also been introduced to India's UPI services.
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