Unified Payments Interface (UPI) transaction volume in India increased by 27% to approximately 145 billion in the first half of the current fiscal year, compared to 114 billion in the same period last year, according to data from the National Payments Corporation of India (NPCI). The transaction value also rose by 20% to Rs 177 lakh crore from Rs 148 lakh crore during this period.
The growth in UPI transactions was recorded between April and September, with September seeing a slight moderation in volume by 1.7% to 24.07 billion from 24.5 billion in August. The transaction value in September also declined by 1.5% to Rs 29.37 lakh crore from Rs 29.82 lakh crore in August. Industry experts noted that the difference in the number of days in August and September partly explains this decline, with average daily transactions higher in September at 802 million compared to 791 million in August.
NPCI, an initiative of the Reserve Bank of India and the Indian Banks' Association, operates retail payments and settlement systems including UPI, which facilitates real-time payments between individuals and merchants. The data comes ahead of the implementation of a new merchant discount rate (MDR) fee on high-value UPI payments for merchants, set to take effect on October 15. This change could impact transaction dynamics in the coming months.
The UPI system continues to be a critical infrastructure for digital payments in India, with the volume and value of transactions reflecting its widespread adoption. The next key date is October 15, when the new MDR fee policy will be implemented, potentially influencing transaction patterns and merchant behavior.