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UPIHow India skipped the queue

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Money Sense0012

UPI

How India skipped the queue

India's system for sending money between any two bank accounts instantly.

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0012 · The Primer13 / 53

Most countries went from cash to cheques to cards to digital wallets. Each step took a decade. India skipped the middle two. NPCI built a system that is free, works across all banks, and settles in seconds. Any app can plug in. A tea vendor now settles a 10-rupee payment in the time it takes to pour the cup.

  • UPI handles over 14 billion transactions per month. That is more than most countries' card networks.
  • UPI works because it is infrastructure, not a product. The government built the road. Companies drive on it.
SourceNPCI monthly reports
Rajan and Zingales on leapfrogging payment infrastructure

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