BackUPI transactions slow down in March amid Covid-19 crisis
Transaction volumes witnessed 6% decline in March at Rs2.06 trillion compared with Feb, which recorded a high of 1.33 billion transactions worth Rs2.22 trillion, shows NPCI dataA decline in the volume and value of transactions comes amid a 21-day nationwide lockdown in the country, beginning March 25, along with a ban of all forms of transportation, barring movement of essential goods
PremiumUnified Payments Interface (UPI)-based transactions decline in March, clocking 1.25 billion transactions, National Payments Corp. of India (NPCI) data showed on Wednesday. Such transactions were worth ₹2.06 trillion.
According to the NPCI data, transaction volumes witnessed 6% decline in March compared with February, which recorded a high of 1.33 billion transactions worth Rs2.22 trillion.
A decline in the volume and value of transactions comes amid a 21-day nationwide lockdown in the country, beginning March 25, along with a ban of all forms of transportation, barring movement of essential goods. The lockdown is an attempt to break the chain of transmission of the coronavirus disease that has affected more than 1,600 individuals in the country.
Even before a complete lockdown was announced, several states across the country had started taking steps towards containing the spread of the disease by banning mass gathering, and shutting school, colleges and offices. This resulted in a dip in consumer activity
However, on a year-on-year basis, UPI-based payments witnessed a 56% increase. Currently, 144 banks are live on UPI.
UPI allows users to transfer money any time, on a real-time basis, across multiple bank accounts, without revealing details of one’s bank account to the other party. The simple, hassle-free three-year old payment system is popular among the masses.
Meanwhile, the government and the central bank have been urging citizens to switch to digital payments and avoid social contact, thereby reducing the chance of transmission of covid-19.
The Reserve Bank of India (RBI) has also urged citizens to use more electronic payments so that exposure to crowded places is reduced, as withdrawing cash from ATM machines, banks requires going to crowded places.
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