PIB Summaries 21 July 2025

Content

• India’s UPI Revolution
• PM Dhan-Dhaanya Krishi Yojana

India’s UPI Revolution

What is UPI?

• Unified Payments Interface (UPI) launched in 2016 by the National Payments Corporation of India (NPCI).
• Integrates multiple bank accounts into a single mobile interface.
• Enables instant fund transfers, merchant payments, utility bill payments, and peer-to-peer transfers.
• Designed as an open, real-time, low-cost and interoperable system accessible to all.

Relevance : GS 3(Economy -Banking , Digital Infrastructure)

India: Global Leader in Fast Payments

• As per IMF’s July 2025 report, India is the world’s foremost country in fast digital payments.
• India accounts for nearly 50 percent of global real-time payment transactions.
• UPI has overtaken global giants like Visa in daily transaction volume:
  • UPI: 640+ million transactions per day.
  • Visa: 639 million transactions per day.

UPI in Figures (June 2025)

• Total Transactions: 18.39 billion (32 percent YoY growth).
• Transaction Value: ₹24.03 lakh crore.
• Share in India’s digital transactions: 85 percent.
• Share in global real-time digital transactions: nearly 50 percent.
• Number of users: 491 million individuals.
• Number of merchants onboarded: 65 million.
• Number of integrated banks: 675.

UPI’s Global Expansion

• UPI is live in seven countries: UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, Mauritius.
• France marks UPI’s entry into Europe, enabling seamless transactions for Indian travelers.
• India is pushing for UPI standardization within the expanded BRICS bloc to enhance cross-border remittances and financial inclusion.

UPI and Interoperability

• UPI introduced true interoperability in digital payments—users can transact across different apps and banks.
• Pre-UPI systems were closed-loop (e.g., limited to a single wallet or bank).
• UPI’s open architecture allowed third–party apps (like PhonePe, Google Pay, Paytm) to thrive on a common backbone.
• Benefits of interoperability:
  • Freedom of choice for users.
  • Competitive innovation among service providers.
  • Seamless, frictionless experience.

Impact on Daily Life

• Instant 24×7 payments from mobile phones—no need for cash or bank visits.
• One app can manage multiple bank accounts.
• Payments secured via two-factor authentication without disclosing sensitive details.
• UPI ID ensures privacy, reducing data vulnerability.
• QR code-based payments at street vendors, kirana stores, delivery points.
• Replaces cash-on-delivery hassles in online commerce.
• Utility bills, donations, mobile recharges—all accessible via one platform.
• In-app grievance redressal mechanisms offer faster resolution.

Foundational Drivers of UPI’s Success

1. Jan Dhan Yojana

• Launched in 2014 to promote financial inclusion.
• As of July 2025, 55.83 crore accounts opened.
• Enabled direct benefit transfers (DBTs) and formal savings.

2. Aadhaar and Digital Identity

• Aadhaar offers biometric-based unique identification.
• Over 142 crore Aadhaar cards issued by June 2025.
• Integral for KYC, subsidy delivery, and authentication for UPI accounts.

3. Connectivity and Digital Infrastructure

• Rapid 5G rollout with 4.74 lakh base stations (2025).
• Mobile subscriber base reached 116 crore.
• Drastic fall in data cost from ₹308/GB (2014) to ₹9.34/GB (2022).
• Affordable smartphones and internet access catalyzed digital adoption.

Why UPI is a Global Model

• Developed as a part of India’s public digital infrastructure (India Stack).
• Open-source, scalable, and innovation-friendly.
• Contrasts with private-dominated payment systems in the West.
• Demonstrates how state-led digital architecture can enable inclusion, competition, and efficiency.

Conclusion

• UPI has transformed India from a cash-heavy to a digital-first economy within a decade.
• It is not merely a payment tool but a model of digital public good.
• Built on financial inclusion (Jan Dhan), identity (Aadhaar), and connectivity (mobile+data).
• Its global expansion signifies India’s emergence as a leader in fintech diplomacy.
• UPI has set the global standard for secure, real-time, inclusive digital payment systems.

PM Dhan-Dhaanya Krishi Yojana

Overview

• Approved: 16 July 2025 by Union Cabinet
• Duration: FY 2025–26 to FY 2030–31 (6 years)
• Annual Outlay: ₹24,000 crore
• Coverage: 100 low-performing agri-districts
• Target Beneficiaries: 1.7 crore farmers
• Nature: Not a new scheme, but convergence of existing 36 Central schemes across 11 Ministries, supplemented by State schemes and private partnerships.

Relevance : GS 3(Agriculture ),GS 2(Schemes)

Objectives

1. Increase agricultural productivity through targeted interventions.
2. Promote crop diversification and sustainable practices.
3. Expand irrigation infrastructure to improve water security.
4. Enhance storage capacities at the panchayat/block level.
5. Facilitate access to credit, both short and long-term, for farmers.

District Selection Criteria

• Parameters: Low productivity, low cropping intensity, weak agri-credit disbursement.
• Geographic Equity: Minimum one district per state/UT.
• Proportional Distribution: Based on share in Net Cropped Area and operational holdings.

Design and Governance Framework

• District-Level Implementation
• District Dhan-Dhaanya Krishi Yojana (DDKY) Samiti chaired by District Collector.
• Involves progressive farmers, agriculture officers, panchayats, and local stakeholders.
• Each district to prepare a District Agriculture & Allied Activities Plan, guided by:
  • Agro-ecological conditions
  • Local cropping patterns
  • Sustainability priorities (e.g., organic farming, soil health, water use)

Three-Tier Institutional Structure

• Central Nodal Officers: Assigned to each district for field monitoring and feedback.

Knowledge and Technical Support

• NITI Aayog:
  • Capacity building
  • Performance tracking
  • Strategic guidance
  • Digital dashboard oversight

• Agricultural Universities:
  • Technical support for district plans
  • Farmer advisories and extension services
  • Research-backed interventions

Digital Infrastructure and Monitoring

• Mobile App for farmers:
  • Multilingual
  • Crop advisory, scheme details, grievance redressal

• Monitoring Dashboard:
  • Tracks 117 Key Performance Indicators (KPIs)
  • Provides real-time updates to Centre, States, and Districts

• District Ranking System:
  • Encourages competitive federalism
  • Rewards timely, efficient, inclusive implementation

Convergence Model: A Replicable Strategy

• Inspired by Aspirational District Programme (ADP) model of targeted, data-driven convergence.
• Leverages existing schemes like:
  • PM-KISAN, PMFBY, e-NAM, ATMA, RKVY, PMKSY, etc.
• Avoids fragmentation, reduces overlap, and enhances impact at the ground level.

Focus Areas (Beyond Traditional Cropping)

• Fruits, vegetables, and horticulture
• Fisheries and aquaculture
• Beekeeping and honey clusters
• Animal husbandry and dairy
• Agroforestry and natural farming

Expected Outcomes

• Improved yield and productivity across targeted regions.
• Enhanced local value chains and agri-processing opportunities.
• Resilient and climate-smart farming systems.
• Higher income and job creation in rural economy.
• Increased domestic agri-output, supporting Atmanirbhar Bharat.

Timeline and Next Steps

• July 2025: Districts and nodal officers finalized.
• August 2025: Training and onboarding of implementing teams.
• October 2025 (Rabi Season): Ground rollout of district plans and convergence activities.

Conclusion

The PM Dhan-Dhaanya Krishi Yojana represents a bold systemic reform to revitalise Indian agriculture in lagging districts. With its emphasis on convergence, decentralised planning, institutional partnerships, and real-time monitoring, it has the potential to drive a second Green Revolution—this time led by equity, efficiency, and ecological sustainability.

It is a clear step toward fulfilling the vision of “Sabka Saath, Sabka Vikas” in the agricultural sector, and bridging regional disparities in rural prosperity.