Policy Wonk

UPI: India's real-time payments system

Headline result
10B+
transactions a month by 2023
Observational
Implemented by
National Payments Corporation of India with the Reserve Bank of India
Type
National government
Where
India
Region
South Asia
When
2016–present
Evidence
Observational / administrative data

The challenge

Most Indians relied on cash, and digital payments were slow, costly or limited.

The case

Launched in 2016 by the National Payments Corporation of India, an organization set up by the central bank and banks, the Unified Payments Interface lets people send money instantly between any bank accounts using a phone and a simple ID or QR code. Banks and private apps compete on top of the shared public system, and transfers between individuals are free. By 2023, UPI was handling more than 10 billion transactions a month, used by street vendors and large firms alike.

Why it worked

Building shared public infrastructure and letting private apps compete on top drove rapid adoption. It built on earlier public investments in bank accounts and digital ID.

Sources