World's largest real-time payment system; 2,400 crore monthly transactions: FM Sitharaman on India's UPI revolution

(AI generated image)AI Quick ReadUnion Finance Minister Nirmala Sitharaman on Sunday said the Unified Payments Interface (UPI) has emerged as the world's largest real-time payment system, processing more than 2,400 crore transactions every month.

She was speaking at an event in Bhubaneswar after Prime Minister Narendra Modi inaugurated the Reserve Bank of India's (RBI) data centre and Cybersecurity Training Institution.

Sitharaman said the new campus would house critical payment infrastructure, including the Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT) systems. These systems play a crucial role in facilitating financial transactions and supporting the uninterrupted functioning of India's payment ecosystem.

“This RBI campus will house mission-critical payment systems, including RTGS and NEFT. Its training institute and research wing will build expertise in cybersecurity, artificial intelligence and data centre technologies,” she said.

The minister highlighted the importance of secure and reliable financial infrastructure as digital payments continue to expand across the country.

“We will ensure that there is ‘Purvodaya se Sarvodaya’: when the East rises, its light reaches all of India,” she said.

Sitharaman said the government had worked to bring every Indian household into the formal banking system, pointing to the opening of more than 59 crore accounts under the Pradhan Mantri Jan Dhan Yojana.

She said financial inclusion initiatives had helped expand access to banking services and credit, particularly among people who previously had limited access to formal financial institutions.

“Banking facilities have been provided to the last man in the line; over 59 crore Jan Dhan accounts have been opened,” she said, adding that direct transfers through these accounts had helped deliver funds to beneficiaries without leakages.

The finance minister also highlighted lending under the Pradhan Mantri MUDRA Yojana, under which more than ₹43 lakh crore has been sanctioned through over 60 crore collateral-free loan accounts for micro and small entrepreneurs.

According to Sitharaman, several borrowers have repaid their loans and subsequently accessed additional credit to expand their businesses. Women account for more than 65% of the scheme's beneficiaries, she said.

The minister cited the Pradhan Mantri SVANidhi scheme as another initiative aimed at expanding access to formal credit. Nearly 1.2 crore loans have been disbursed to street vendors under the programme, enabling them to meet their financial needs and seek further funding to grow their businesses.

Sitharaman also referred to the Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana and Atal Pension Yojana, which provide affordable life insurance, accident insurance and pension coverage.

She said these initiatives form part of the government's broader efforts to extend financial protection and improve access to formal financial services.

The finance minister praised Prime Minister Modi's Purvodaya policy, which focuses on accelerating development in eastern India. She said the government would work to ensure that the region's economic progress contributes to the growth of the entire country.