📄 Abstract
The rapid growth of digital payment systems has transformed the financial ecosystem of India. Among these innovations, the Unified Payments Interface (UPI), introduced by the National Payments Corporation of India (NPCI) in 2016, has emerged as the most widely used real-time payment platform. UPI has significantly influenced the operations of Small and Medium Enterprises (SMEs) by enabling instant, low-cost, secure, and interoperable digital transactions. This study examines the role of UPI in enhancing the financial performance of SMEs in India. The research explores how UPI contributes to increased sales, improved cash flow management, reduced transaction costs, enhanced customer satisfaction, financial transparency, and business formalization. Secondary data from RBI, NPCI, Ministry of Finance reports, industry publications, and recent scholarly studies have been utilized. The findings indicate that UPI has become a critical driver of digital transformation among SMEs by improving operational efficiency, accelerating payment cycles, and expanding market access. Despite challenges such as cybersecurity risks, digital literacy gaps, and technological dependence, UPI continues to strengthen the financial sustainability and competitiveness of Indian SMEs.
🏷️ Keywords
📚 How to Cite:
Mrs. Bhagyashree Hiremani , Mr. Basavaraj M. Naik , THE ROLE OF UPI IN ENHANCING FINANCIAL PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES (SMEs) IN INDIA , Volume 14 , Issue 6, June 2026, EPRA International Journal of Agriculture and Rural Economic Research (ARER) , Pages: 13 - 18 , DOI: https://doi.org/10.36713/epra28282