UPI: world’s largest retail fast-payment system
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Asked by UPSCPrelims 2026, 20172 PYQs
UPSC has already asked about this. Read the story with these questions in mind.
- Prelims 2026Which one of the following statements about Unified Payments Interface (UPI) and Central Bank Digital Currency (Digital Rupee) is not correct ?Solve with answer →
- Prelims 2017Consider the following statements: National Payments Corporation of India (NPCI) helps in promoting the financial inclusion in the country. …Solve with answer →
What happened
- The IMF’s June 2025 note “Growing Retail Digital Payments (The Value of Interoperability)” called UPI the world’s largest retail fast-payment system by volume [Lok Sabha reply, PIB].
- ACI Worldwide’s 2024 report puts UPI at about 49% of global real-time payment volume [PIB].
- About 5.45 crore digital touch points were set up in tier-3 to 6 centres through the Payments Infrastructure Development Fund by 31 October 2025 [PIB].
Background
- UPI is run by NPCI. PIDF, set up by RBI, gives grants for PoS terminals and QR codes in smaller towns.
Why it matters
- Interoperability is why UPI scaled: any app can pay any bank account. The weak spot is revenue, since merchant payments carry zero MDR.
How to use this in Mains
- As per PIB (2025-12-08): the IMF's June 2025 note "Growing Retail Digital Payments (The Value of Interoperability)" called UPI the world's largest retail fast-payment system by volume.
- Interoperability is why UPI scaled: any app can pay any bank account. The weak spot is revenue, since merchant payments carry zero MDR.
Quotable data pointACI Worldwide's 2024 report puts UPI at about 49% of global real-time payment volume.
PIB: MoF: UPI recognised by IMF, 8 Dec 2025
Exam angle
UPSC
Prelims: NPCI, PIDF. · Mains: digital public infrastructure.
Practice MCQs
Original practice questions (not PYQs).
Practice · UPSC
UPI's share of global real-time payment volume (ACI 2024)
Answer (c) & explanation
PIB.
Practice · UPSC
PIDF supports digital payment infrastructure mainly in
Answer (b) & explanation
PIB.
Practice · UPSC
UPI is operated by
Answer (b) & explanation
General knowledge.
Go deeper
Official source: PIB: MoF: UPI recognised by IMF, 8 Dec 2025
facts from cited sources only; faculty review pending