The Impact of the Unified Payments Interface (UPI) on the Indian Economy

Author(s)	Abhay Raj Singh
Country	India
Abstract	The Unified Payments Interface (UPI), launched in 2016 by the National Payments Corporation of India (NPCI), has become central to India’s digital payments ecosystem. This paper uses official data from NPCI, the Reserve Bank of India’s Digital Payments Index (DPI), and peer-reviewed and institutional studies to assess UPI’s effects on the Indian economy. We document UPI’s growth in volume and value, its increasing share of digital transactions, and its contributions to financial inclusion, payment cost reduction, merchant adoption, and formalisation of economic activity. We also propose econometric specifications to quantify UPI’s impact at a state level. Results suggest UPI has been associated with improved payment infrastructure supply, higher digital payment adoption, and positive correlations with formal sector growth. Key challenges remain: fraud/cybersecurity, infrastructure gaps (particularly rural), digital literacy, and regulatory oversight. We end with policy recommendations and directions for future research
Published In	Volume 7, Issue 5, September-October 2025
Published On	2025-10-09
DOI	https://doi.org/10.36948/ijfmr.2025.v07i05.57783

About IJFMR Fees & Payment Current Issue Publication Archive	Submit Research Paper Track Submission Status Publication Guidelines Publication Ethics Peer Review & Plagiarism	Join as a Reviewer Editors & Reviewers Reviewer Referral Program Get Reviewer Membership Certi.	Website/Journal Policies Usage Policy Content Policies Privacy Policy

Contact Us		+91-9687-828-838	editor@ijfmr.com

International Journal For Multidisciplinary Research