UPI's Soaring Growth in Credit Transactions: A Deep Dive

The National Payments Corporation of India (NPCI) is experiencing significant growth in UPI platform's credit features, surpassing Rs 10,000 crore in transactions monthly. Credit cards and pre-sanctioned credit lines are key contributors. The recent Global Fintech Fest highlighted future developments in digital currency and ongoing regulatory challenges.

The National Payments Corporation of India (NPCI) is seeing a remarkable surge in the Unified Payments Interface (UPI) platform's credit transactions, reaching around Rs 10,000 crore per month, a senior official disclosed on Tuesday.

Most of these transactions stem from the credit card feature introduced in November 2022. Chief Executive Dilip Asbe informed reporters that the pre-sanctioned credit lines on UPI are also increasing in popularity, with up to Rs 200 crore being distributed monthly.

The announcement coincides with rising concerns about the growth of unsecured loans, such as credit cards and personal loans. Unified Payments Interface (UPI) recorded 466 million transactions in July.