UPI revolutionised financial inclusion across India: Former RBI chief

The Unified Payments Interface (UPI) has played a transformative role in advancing financial inclusion across India, according to remarks made by a former Reserve Bank of India governor. The remarks underscore the critical impact that digital payment infrastructure has had on expanding banking services to underserved populations nationwide.

UPI, launched in 2016 as a real-time inter-bank electronic funds transfer system, has become one of the world's most widely adopted digital payment platforms. The system enables instantaneous peer-to-peer and merchant transactions through mobile devices, dramatically lowering barriers to financial access for citizens across urban and rural areas.

The technology has facilitated unprecedented growth in digital transactions, reducing India's reliance on cash-based commerce while simultaneously bringing millions of previously unbanked and underbanked individuals into the formal financial ecosystem. By enabling seamless payments without requiring traditional bank infrastructure, UPI has particularly benefited small businesses, traders, and residents in remote regions.

With transaction volumes continuing to surge, the platform has become integral to India's broader financial inclusion agenda. The system's success in democratizing access to payment services has been recognised as a model for emerging economies seeking to modernize their financial infrastructure and expand economic participation.