IMF hails India as global leader in digital payments as UPI transforms transactions

India has been recognised by the International Monetary Fund (IMF) as the world’s leader in fast digital payments, driven by the remarkable growth of the Unified Payments Interface (UPI). Launched in 2016, UPI has revolutionised how Indians send and receive money, allowing seamless, secure, and low-cost transfers directly from mobile apps.

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According to the IMF’s recent note on digital payment systems, India’s progress has been fueled by UPI’s interoperability, which links multiple bank accounts and services through a unified platform. In June 2024 alone, the system recorded 18.39 billion transactions, handling over Rs 24 lakh crore in value. This represents a 32% growth compared to June 2023, showcasing increasing public trust in digital infrastructure.

UPI now accounts for 85% of all digital transactions in India, connecting 491 million users, 65 million merchants, and over 675 banks. The IMF has praised this transformation as a milestone in digital financial inclusion, highlighting how India has moved from a cash-reliant economy to a digitally empowered one.

India’s leadership isn’t just local, it’s global. Nearly 50% of the world’s real-time digital transactions now take place through UPI. Moreover, the system is already active in seven countries, including the UAE, Singapore, France, and Nepal. UPI’s entry into France also marks its debut in Europe, facilitating cross-border payments for Indian travellers and diaspora communities.