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Key Points

UPI has achieved a remarkable milestone by powering 50% of global digital payments. Despite this success, bringing rural and tribal communities into the formal financial system remains challenging due to internet access issues. The government has firmly stated it won't impose any fees on UPI transactions to maintain accessibility. Meanwhile, the RBI has launched innovative features including multi-signatory accounts and wearable payment technology to enhance the digital payment ecosystem.

Key Points: UPI Powers 50 Percent of Global Digital Payments Says Nagaraju

  • UPI now processes half of all digital payment transactions globally
  • Rural and tribal area financial inclusion remains a significant government challenge
  • Government confirms no plans to introduce fees for UPI transactions
  • RBI launches innovative payment features including multi-signatory accounts and wearable payments
2 min read

UPI powers 50 pc of digital payments globally: M. Nagaraju

DFS Secretary M. Nagaraju reveals UPI dominates half of worldwide digital payments while highlighting rural inclusion challenges and confirming no UPI transaction fees.

"In many places, we are also facing challenges with internet access. Therefore, offline transactions, rural transactions, are a challenge. - M. Nagaraju"

Mumbai, Oct 7

UPI powers 50 per cent of digital payments globally, but despite its growth, bringing the entire community living in tribal and rural areas into the formal financial system remains a major challenge for the government, Department of Financial Services (DFS) Secretary M. Nagaraju said on Tuesday.

Talking to the media on the sidelines of the sixth Global Fintech Fest (GFF) 2025, Nagaraju said: "In many places, we are also facing challenges with internet access. Therefore, offline transactions, rural transactions, are a challenge."

Meanwhile, he reiterated that the government has no plans to impose fees on transactions made through UPI.

He emphasised the importance of GST reform, saying that some public sector insurance companies are planning to expand their business, while others are reducing commissions. Therefore, each company will design its business plan according to its capabilities.

"One thing is certain, that all insurance companies, whether public sector or private sector, have reduced the insurance cost through GST because GST has become zero," he said.

Earlier at the same event, Reserve Bank of India Deputy Governor T. Rabi Sankar announced the launch of three key digital payment innovations-- UPI Multi-Signatory, Small Value Transactions using wearable glasses via UPI Lite, and forex on Bharat Connect.

The Multi-Signatory Accounts feature will enable multi-signatory or joint accounts on UPI that require authorisation from one or more signatories to perform UPI payments seamlessly.

Signatories can conveniently use any UPI app to manage linked bank accounts, making the process more convenient and hassle-free, and enhancing transaction speed.

The Small Value Transactions using Wearable Glasses via UPI Lite will allow users to complete hands-free and secure transactions by simply scanning a QR, authenticate and complete payments through voice on Smart Glasses, without needing a phone or entering a PIN.

The Deputy Governor also launched the linkage of the FX Retail Platform with Bharat Connect, enabling retail customers to access foreign currency through their preferred payment or banking apps integrated with the Bharat Connect (BBPS) platform.

- IANS

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Reader Comments

R
Rohit P
Great to hear no UPI charges! But the rural connectivity issue is real. My village in Bihar still struggles with poor internet. Hope they fix this soon.
S
Sarah B
As someone who travels frequently, the forex integration with Bharat Connect is a game-changer! No more running to forex counters last minute.
A
Arjun K
Multi-signatory accounts will be perfect for family businesses! No more waiting for physical signatures. Digital India making life easier for entrepreneurs.
K
Karthik V
While these innovations are impressive, I hope they focus equally on cybersecurity. With more digital transactions, we need stronger protection against fraud.
M
Meera T
The GST benefit on insurance is a welcome relief for middle-class families like mine. Every rupee saved counts in today's economy! 🙏

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