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BHIM UPI Transactions Double in 6 Months – What’s Behind the Surge?

BHIM UPI, India’s flagship digital payment app, has witnessed a dramatic surge in transactions, doubling its user activity in just six months. The National Payments Corporation of India (NPCI) is aggressively pushing incentives and marketing to revive the app’s growth.

Why is This Important for Exams?
Questions on digital payments, government schemes, and economic trends frequently appear in SSC, PSC, banking, and design entrance exams like NID/NIFT. Understanding BHIM’s revival, NPCI’s role, and UPI’s impact helps in:
General Awareness sections of competitive exams.
Current Affairs for interviews and descriptive papers.
Economic & Banking topics in SSC & PSC exams.

BHIM’s Major Turnaround – Key Highlights
Transaction Boom: BHIM processed 70 million transactions in June 2024, up from 33.8 million in January – a 91% jump.
NPCI’s Push: Over ₹150-200 crore allocated for promotions, cashbacks, and discounts.

New Features:
Revamped UI for better user experience.
Focus on small-ticket payments (average transaction size now ₹1,756).
Targeted incentives on mobile recharges, bill payments, and FasTag.

New Products:
Vega – Helps merchants process UPI payments within their apps.
Vishwas – Enables banks to integrate UPI in mobile banking apps.

Sample Questions & Answers for Competitive Exams
Q1. What is the reason behind BHIM UPI’s recent transaction surge?
Ans: NPCI’s increased incentives, cashback offers, and a revamped user interface have driven growth.
Q2. How much has BHIM’s transaction count grown between January and June 2024?
Ans: A 91% increase, from 33.8 million to 70 million transactions.
Q3. What is the average ticket size of BHIM UPI transactions as of May 2024?
Ans: Around ₹1,756, down from ₹3,500 a year ago.
Q4. Name two new products launched by NPCI to boost BHIM’s adoption.
Ans: Vega (merchant UPI payments) and Vishwas (banking UPI integration).
Q5. Why is NPCI promoting BHIM aggressively?
Ans: To reduce dependency on third-party UPI apps and increase market diversity.

Final Thoughts
BHIM’s resurgence is a key development in India’s digital payment ecosystem, making it a crucial topic for competitive exams. Keep an eye on NPCI’s initiatives and UPI trends for upcoming tests!