RBI Projects UPI Daily Transactions to Reach One Billion; Highlights Cross-Border Potential and Measured CBDC Rollout

RBI Projects UPI Daily Transactions to Reach One Billion; Highlights Cross-Border Potential and Measured CBDC Rollout

The Reserve Bank of India (RBI) has set a target for Unified Payments Interface (UPI) transactions to reach one billion daily within the next few months, a significant rise from the current 500 million transactions per day, according to Governor Shaktikanta Das. Speaking at the Group of Thirty’s Annual International Banking Seminar in Washington, DC, Das outlined the RBI's plans to expand UPI usage domestically and internationally and discussed the cautious approach for a nationwide rollout of the central bank digital currency (CBDC).

"UPI has introduced remarkable efficiency into the payment ecosystem," said Das, noting that daily transaction volumes averaged around 500 million in September 2024, with the National Payments Corporation of India (NPCI) reporting that UPI processed 15.04 billion transactions, amounting to Rs 20.64 lakh crore. This figure marked an increase from August’s 483 million daily transactions, indicating a rapid adoption trajectory.

To further bolster UPI’s reach, the RBI is actively pursuing partnerships to link India’s UPI with foreign payment systems, a move intended to strengthen UPI’s role in cross-border transactions. Currently, UPI is operational in seven countries: France, the UAE, Singapore, Bhutan, Sri Lanka, Mauritius, and Nepal. "UPI has substantial potential for cross-border payments," Das stated. “We are working on connecting India’s UPI with the fast payment systems of other countries to facilitate seamless international transactions.”

The governor also commented on the progress of India’s CBDC initiative, explaining that the RBI will take a cautious, gradual approach to a nationwide rollout. “The CBDC’s most impactful use is expected to be in cross-border transactions. By eliminating intermediaries, CBDC could provide a low-cost, fast, and secure method for transferring funds internationally," he said.

The RBI began the CBDC journey with its first pilot for wholesale transactions in government securities on November 1, 2022, followed by a retail transactions pilot on December 1. Das emphasized that the RBI will not rush the broader implementation of the CBDC, preferring to ensure that the digital currency meets high standards for security, design, and resilience before full deployment.