The Banking sector of India is one of the most important pillars of the Indian economy which not only helps in the development but also in stabilizing the economy in times of inflation or deflation. After the launch of the New Economic Policy of 1991, the Indian Banking sector has undergone several changes with the establishment of new Private Banks in different parts of the country and privatization of the public banks. The Digital Payment system is one of the products of Modern Banking which has seen tremendous growth in the last 10 years with new and innovative payment methods being added to the basket. To support digital payments “The National Payment Corporation of India (NPCI)” created the “Unified Payment Interface (UPI)”, which is a simplified cost-effective innovation for providing digital payment services. Technical advancements, fast internet connections and low-cost smartphones have resulted in the growing use of Digital Payments. UPI is a revolutionary technique of sending money using a VPA (Virtual Payment Address) designed by the NPCI to promote a paperless and cashless economy. As a result, its ability to contribute to the attainment of the digital economy must be considered. This research is concerned with comprehending the growth of UPI inthe retail online payment ecosystem by investigating various secondary data sources. The research also analyses user’s perceptions of UPI service. The findings show that UPI has experienced rapid growth in recent years because of its simplicity, convenience, security and cost-effectiveness and customers' preference for paperless payments over other methods.

KEYWORDS: UPI, Digital Transactions, Digital Payment, Retail Payment, NPCI, Fintech.