Due to a recovery in economic activity, UPI transactions reached an all-time high in June. The number and value of transactions are significantly greater than they were in April and May.
After the second Covid-19 wave interrupted economic development, a record surge in monthly United Payments Interface (UPI) transactions in June signaled a rebound in demand for goods and services.
According to statistics published by the National Payments Corporation of India, 2.8 billion UPI transactions worth Rs 5,47,373 crore were registered last month (NPCI). This surpasses the previous milestone of 2.73 billion transactions worth Rs 5,04,886 crore set in March.
However, because to the second wave of the Covid-19 epidemic, UPI payments decreased in volume and value in April and May.
When compared to May, when 2.53 billion transactions worth Rs 4,90,638 crore were recorded, the data shows a 10.6% increase in volume and an 11.56 percent increase in value of UPI transactions.
According to the UPI statistics for June, individuals are transacting more products and services than they have in the previous several months. It also indicates increased economic activity in the country as states relaxed Covid-19 restrictions as the Covid situation improved.
UPI transactions may reach 3 billion per month, according to specialists tracking such transactions, assuming economic activity continues to increase without interruption.
However, UPI transactions account for a small percentage of total transactions in the nation and may not provide a full picture of current demand.
While demand has grown in the previous two months, analysts believe that the economy’s recovery will hinge on whether the current pace can be maintained for a longer length of time.