UPI to account for 90% of retail transactions in 5 years: RBI bulletin

According to the report, a total of 9.4 billion UPI transactions were recorded in the month of May, with a 143% year-on-year (YoY) rise in successful transactions under the UPI Autopay feature, and a 23% on-year rise in new mandate registrations..

More importantly, the wedge between the growth rates of banks credit and deposit narrowed, with the growth in deposit mobilisation recording a 27-month high of 11.8% amidst continuing efforts by banks to bridge the funding gap.. Further, in response to the RBIs cumulative repo rate hike of 250 basis points since May 2022, banks have revised their benchmarks for pricing of loansthe external benchmark-based lending rate (EBLR) and the marginal cost of funds-based lending rate (MCLR) upwards..

Indias foreign exchange reserves increased by $69.2 billion since October 21, 2022 to $593.7 billion as on June 9, 2023, which is sufficient to cover 10 months of imports projected for FY23 or 97% of total external debt outstanding at end December 2022..

During the calendar year 2023, Indias foreign exchange reserves increased cumulatively by $31, which is the second highest among major foreign exchange reserves holding countries, the report said.. Foreign portfolio investments, meanwhile, also remained positive for third consecutive month in May and at their highest level in the previous nine months at $5.5 billion..

In June 2023 so far (up to June 16), FPIs invested $1.2 billion in Indian markets, taking net inflows in 2023-24 to $8.8 billion, as against net outflows of US 5.9 billion during FY23. India received 48.7% of total emerging markets FPI equity flows in 2023-24 (up to June 14) as against Indias weight in MSCI Emerging Market Index of 14.3% (as on May 31, 2023), the report said..

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