New Delhi, October 1 (Daily Kiran) : The Unified Payments Interface (UPI) has seen remarkable growth in September, with transaction numbers surging by 23% year-on-year, according to data released by the National Payments Corporation of India (NPCI) on October 1. The total value of these transactions also rose by 18%, surpassing ₹29.37 lakh crore.
On average, approximately 80.2 crore transactions were conducted daily through UPI during September, with a daily average value of about ₹97,913 crore. In August, UPI transactions had already increased by 22% year-on-year, amounting to 24.51 billion transactions, with a total value of ₹29.82 lakh crore.
Additionally, the Immediate Payment Service (IMPS) for instant fund transfers reported an 18% annual increase in September, reaching ₹7.06 lakh crore. Daily, there were about 1.18 crore transactions via IMPS, with an average transaction value of ₹23,530 crore.
In a related development, a delegation of around 20 business representatives withdrew their call for a ‘No UPI Day’ following a meeting with Finance Minister Nirmala Sitharaman in the national capital on October 2. They had expressed concerns regarding a proposed 0.4% fee on merchant UPI transactions exceeding ₹2,000.
Business leaders indicated that such a fee could burden small and medium enterprises, potentially hindering the adoption of digital payments among merchants. The delegation, led by Praveen Khandelwal, MP from Chandni Chowk and General Secretary of the Confederation of All India Traders (CAIT), raised these issues during their discussions.
The Merchant Discount Rate (MDR) applies only to person-to-merchant (P2M) transactions above ₹2,000, while transactions up to that amount will remain free of MDR. Government data shows that over 96% of UPI merchant transactions fall under the ₹2,000 category, meaning most UPI payments will not incur MDR, and consequently, no GST will be applicable.
Moreover, merchants with monthly UPI receipts of up to ₹1 lakh will not be required to pay MDR. The new UPI framework will not affect person-to-person (P2P) transactions, which will continue to be completely free, regardless of the amount involved.
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