The IMF calls India's UPI a global model for digital payments

Current Context: On 17 September 2025, the International Monetary Fund (IMF) hailed India’s Unified Payments Interface (UPI) as a global model for digital payments.

• UPI processed over 20 billion transactions in August 2025, worth ₹24.85 lakh crore, making it the world’s largest retail fast payment system.
• Built on India’s Digital Public Infrastructure (DPI) – Pradhan Mantri Jan Dhan Yojana (PMJDY) for financial inclusion, Aadhaar for digital identity, and mobile internet penetration.
• The IMF praised UPI’s interoperability, low‑cost design, and open architecture, which prevent monopolies and encourage innovation.
• Globally, UPI is linked with PayNow (Singapore) and operational in United Arab Emirates (UAE), Mauritius, Nepal, Bhutan, and even usable at the Eiffel Tower in France.
• On 15 September 2025, the National Payments Corporation of India (NPCI) raised the Person‑to‑Merchant (P2M) transaction limit to ₹10 lakh/day for verified categories.

Question:

Q.1 On 17 September 2025, which international body hailed India’s Unified Payments Interface (UPI) as a global model for digital payments?
a) World Bank
b) Asian Development Bank (ADB)
c) Bank for International Settlements (BIS)
d) International Monetary Fund (IMF)

Answer: d) The International Monetary Fund (IMF) praised UPI for its scale, low-cost design, and interoperability, calling it a benchmark for digital payments globally.