UPI Transaction Value Rises 18% to Rs 29.37 Lakh Crore in September

UPI processed an average of about 802 million transactions every day during the month, with the average daily value of transactions standing at nearly Rs 97,913 crore.

The September figures followed a strong performance in August, when UPI recorded 24.51 billion transactions, representing a 22 per cent year-on-year increase. The value of transactions during the month stood at Rs 29.82 lakh crore, up 20 per cent from a year earlier.

The NPCI data also showed continued growth in the Immediate Payment Service (IMPS). Transaction value through the instant fund transfer platform reached Rs 7.06 lakh crore in September, registering an 18 per cent year-on-year increase. IMPS recorded an average of 11.80 million transactions per day, with the average daily transaction value at around Rs 23,530 crore.

The latest UPI data comes amid discussions over a proposed merchant discount rate (MDR) on certain UPI transactions. Leading traders’ organisations recently withdrew their call to observe October 2 as “No UPI Day” following a meeting with Finance Minister Nirmala Sitharaman.

A delegation of around 20 trade representatives from different states had raised concerns over the proposed 0.4 per cent fee on merchant UPI transactions above Rs 2,000. The traders argued that such a charge could increase costs for small and medium-sized businesses and affect the adoption of digital payments among merchants.

The delegation was led by Praveen Khandelwal, Chandni Chowk MP and secretary general of the Confederation of All India Traders (CAIT).

Under the proposed framework, MDR would apply only to person-to-merchant (P2M) UPI transactions above Rs 2,000. Payments of up to Rs 2,000 would continue to attract zero MDR and consequently no GST on MDR.

Government data shows that transactions of up to Rs 2,000 account for more than 96 per cent of UPI merchant transaction volumes. Merchants receiving up to Rs 1 lakh through UPI each month would also remain outside the MDR framework.

The framework does not apply to person-to-person transactions, which will continue to remain free regardless of the amount transferred.