UPI transactions surge 23% to 24.07 billion in September: NPCI

Unified Payments Interface (UPI) transaction volume rose 23 per cent year-on-year to 24.07 billion in September, while the transaction value increased 18 per cent to Rs 29.37 lakh crore, according to data released by the National Payments Corporation of India (NPCI) on Thursday.UPI processed an average of around 802 million transactions daily during September, with the average daily transaction value standing at about Rs 97,913 crore.In August, UPI transaction volume had risen 22 per cent year-on-year to 24.51 billion, while transaction value increased 20 per cent to Rs 29.82 lakh crore.
Meanwhile, the value of transactions processed through the Immediate Payment Service (IMPS) stood at Rs 7.06 lakh crore in September, registering an 18 per cent year-on-year increase.The average daily IMPS transaction count was 11.80 million, while the average daily transaction value stood at Rs 23,530 crore, NPCI data showed.
Separately, leading traders’ bodies withdrew their call to observe October 2 as a “No UPI Day” following a meeting with Union Finance Minister Nirmala Sitharaman in New Delhi.A delegation of around 20 trade representatives from various states met Sitharaman to raise concerns over the proposed 0.4 per cent fee on merchant UPI transactions above Rs 2,000, according to agency reports.The traders said the proposed fee could increase the burden on small and medium businesses and affect the adoption of digital payments among merchants.The delegation was led by Chandni Chowk MP and Confederation of All India Traders (CAIT) Secretary General Praveen Khandelwal.
Under the new framework, Merchant Discount Rate (MDR) will apply only to person-to-merchant (P2M) transactions above Rs 2,000. Transactions up to Rs 2,000 will continue to have zero MDR and, consequently, no GST impact arising from MDR.Government data indicates that transactions of up to Rs 2,000 account for more than 96 per cent of UPI merchant transaction volume. Therefore, the majority of UPI payments will not attract MDR or GST on MDR.Merchants with monthly UPI receipts of up to Rs 1 lakh are also exempt from MDR and consequently will not face the issue of GST on MDR.

(Business Correspondent)