Unified Payments System (UPI) transformed digital payments in India. Today you will get the facility of digital payment through UPI at big shopping malls and betel and vegetable shops. People are not only buying everyday items through UPI, they are also paying the bills of expensive home appliances, expensive gadgets and design clothes through it.
Its role is very important in the journey of digitalizing India’s payment system and reducing the trend of cash. But, this convenience also has a downside. News agency IANS quoted experts as saying that people are also getting addicted to wasteful expenditure due to UPI. They are also buying such things which they do not actually need at that time.
Why is wasteful expenditure increasing due to UPI?
Smartphones are the biggest reason for increase in purchases through UPI/QR codes. Today, a large population of the country has access to smartphones and data. They pay for anything through smartphones in a jiffy. This is also becoming the reason for wasteful expenditure.
A recent survey by IIT Delhi shows that due to UPI and other digital payment options, about 74 percent people are ‘spending more than necessary’. Actually, it is much easier to make payment through digital mode as compared to cash. Sometimes there is a problem like change in cash, or you do not have that much money at that time, then you stop from shopping.
But, there is no problem in UPI or any other digital payment. Understand that all the money in your bank account is in your smartphone. You can even spend more than your bank account using means like credit cards. You can also borrow immediately from friends or relatives.
What are industry experts saying?
Prabhu Ram, head of the Industry Intelligence Group at market intelligence firm CMR, told news agency IANS, ‘There is a huge possibility of such a facility increasing wasteful expenditure, because it is a digital mode. In this, it does not seem like giving cash by hand, how much money you are spending.
The latest data from National Payments Corporation of India (NPCI) showed that the number of UPI transactions reached 1,330 crore in April. There has been an increase of 50 percent on annual basis. Last year, UPI transactions grew by almost 60 percent to a record Rs 11,768 crore.
According to experts, consumer spending is increasing in India. Now people are spending a lot of money on cars, smartphones, TV and other items. This is boosting the economic growth of the country. However, it is also being seen that because of UPI, people are spending more than necessary on some high priced items. And this trend is continuously increasing.
