The Role of Unified Payments Interface (UPI) In Promoting Financial Inclusion in India: A Quantitative Empirical Analysis (2017–2026)

Volume 11, Issue 2, 2026

International Journal of Commerce and Management Studies, ISSN 2456-3684

Paper Title

Author Name and Affiliation

Shivani More Wagh

Department of BBA, Dr. D.Y. Patil Arts, Commerce & Science College, Pimpri, Pune, Maharashtra, India

Shital Bhusare

Suryadatta Institute of Business Management and Technology, Pune, Bavdhan, Pune, Maharashtra, Email: shivani.more@dypvp.edu.in

Abstract

This research paper evaluates the empirical impact of the Unified Payments Interface (UPI) on accelerating financial inclusion in India across a decade-long horizon from 2017 to 2026. Utilizing secondary macro-level time-series data extracted from official repositories including the Reserve Bank of India (RBI), National Payments Corporation of India (NPCI), and Ministry of Finance disclosures, the study models the structural relationship between retail digital transaction acceleration and metrics of social banking integration. Ordinary Least Squares (OLS) regression analysis and Pearson correlation coefficients are applied as core statistical tools. The quantitative results demonstrate an exceptionally strong positive correlation (r = 0.9782, p < 0.001) between annual UPI transaction volume and the multi-dimensional RBI Financial Inclusion Index (FI-Index). The predictive OLS model indicates that every unit increase of 1 billion transactions yields a 0.174-point upward movement in the national inclusion metric. The study explores how systemic digital infrastructure over the India Stack framework successfully minimized geographical banking frictions, lower transaction overheads, and integrated the unbanked and under-banked rural segments into the formal financial ecosystem. Policy implications underscore the importance of expanding offline feature-phone interfaces (UPI 123Pay) and boosting conversational interfaces to safeguard low-tier inclusive gains against emerging regional digital divides.

Keywords

Unified Payments Interface (UPI), Financial Inclusion, OLS Regression, Digital Public Infrastructure, PMJDY, RBI FI-Index.

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DOI

DOI: 10.67061/ijcams.2026.vol.11.issue.02.8116

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