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NPCI Reports 37% Surge in FY24 Profit to Rs 1,134 Crore, Boosted by UPI Transactions

• ByStartupStory     |    September 13, 2024

The National Payments Corporation of India (NPCI), which manages the country’s flagship Unified Payments Interface (UPI) payments system, has reported a 37% growth in its consolidated net profit for the financial year ending March 2024. The not-for-profit institution recorded a net surplus of ₹1,134 crore in FY24, up from ₹828 crore in FY23. This growth was driven by the increasing adoption of digital payments across India.

NPCI, which handles the majority of digital payment settlements on behalf of the Reserve Bank of India (RBI), also saw its revenue rise to ₹2,876 crore from ₹2,064 crore in the previous financial year. The organization operates under Section 8 of the Companies Act 2013, designating its profit as a “net surplus.”

UPI Transactions Drive Growth

A significant portion of NPCI’s growth came from the increase in UPI transactions. According to the institution, UPI payments grew by 45% year-on-year. The total value of UPI transactions in FY24 crossed ₹20.64 lakh crore, marking the third consecutive month where the value exceeded ₹20 lakh crore.

In June 2024, the total UPI transaction value was ₹20.07 lakh crore, while in May, it stood at ₹20.44 lakh crore. The volume of UPI transactions in July 2024 showed a 3.95% increase compared to June, while the value of transactions saw a 2.84% growth.

During the first four months of FY25, UPI recorded transactions amounting to ₹80.79 lakh crore across 5,566 crore transactions. In FY23-24, UPI transactions surged to 13,100 crore, compared to 8,400 crore in the previous year. The Reserve Bank of India’s (RBI) monthly bulletin highlighted the massive 10-fold increase in UPI transactions from FY20, when the platform processed 1,250 crore transactions.

The bulletin further noted, “UPI transactions now account for 80% of the total digital payment volumes in India, underscoring the platform’s pivotal role in transforming the country’s digital payment landscape.”

NPCI’s Diverse Payment Portfolio

While UPI transactions played a significant role in NPCI’s growth, the institution also operates several other payment systems. These include the National Financial Switch (ATM network), Bharat Bill Pay, RuPay Cards, BHIM, FASTag, National Automated Clearing House (NACH), Immediate Payment Service (IMPS), and others. Revenue from these operations forms the core of NPCI’s financial performance.

With the continued surge in digital payments, particularly through UPI, NPCI is well-positioned to maintain its strong growth trajectory in the coming years, further establishing its role as the backbone of India’s digital payment infrastructure.

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