Title: A quantitative analysis of UPI's role in India's stock market evolution and retail investor dynamics

Authors: Vandana Lakhotia Ladha; Ajay Trivedi; Kritika Pancholi

Addresses: Parul Institute of Commerce, Parul University, Limda, Waghodia Road Baroda, Gujarat, India ' Parul Institute of Commerce, Parul University, Baroda, Gujarat, India ' Parul Institute of Commerce, Parul University, Limda, Waghodia Road Baroda, Gujarat, India

Abstract: The launch of UPI in 2016 transformed financial transactions, replacing cash exchanges and seamlessly integrating into various sectors. Its impact on businesses, fintech, and startups has been significant, fostering collaboration and innovation. Despite its effectiveness, daily transaction restrictions pose challenges. Raising these limits could attract more investment, benefiting the economy. UPI has attracted retail investors, contributing to a diverse investor base and transforming the intersection of financial technology and capital markets. This study quantitatively assesses UPI's impact on India's stock market, focusing on demat accounts and retail investor behaviour. The research involves a longitudinal study using data from reputable financial institutions, exploring UPI's influence on demat account numbers, power dynamics in the stock market, and trading behaviour. Recommendations include increasing daily transaction limits to empower retail investors and acknowledging UPI's significant role in India's evolving financial narrative. Continuous monitoring and research are emphasised to understand UPI's long-term impact on the country's financial ecosystem.

Keywords: Unified Payments Interface; UPI; demat account; retail investors; Nifty 50.

DOI: 10.1504/IJSEM.2026.155280

International Journal of Services, Economics and Management, 2026 Vol.17 No.4, pp.389 - 409

Received: 14 Dec 2023
Accepted: 23 Mar 2024
Published online: 30 Jul 2026 *

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