UPI hits 24 billion transactions in September; NPCI data shows 1.8% monthly dip amid MDR concerns

UPI transaction volume remained above the 24-billion mark in September despite a 1.8% month-on-month decline, according to data released by the National Payments Corporation of India (NPCI), even as concerns among traders over the introduction of a Merchant Discount Rate (MDR) from October 15 loom over the digital payments ecosystem.

The Unified Payments Interface recorded 24.07 billion transactions in September, compared with 24.51 billion transactions in August. Despite the monthly dip, UPI transaction volume grew 23% year-on-year, highlighting the continued expansion of digital payments in India.

The total value of UPI transactions stood at ₹29.37 lakh crore in September, down from ₹29.82 lakh crore in August. However, the transaction value registered 18% year-on-year growth, according to NPCI data.

NPCI said UPI processed an average of 802 million transactions per day in September, while the average daily transaction value stood at around ₹97,913 crore.

The latest data comes after UPI recorded 24.51 billion transactions in August, marking a 22% year-on-year increase. The system processed transactions worth ₹29.82 lakh crore during the month, up 20% from the year-ago period.

NPCI, which operates the UPI platform, shared the latest figures on X, stating UPI’s role in enabling “easy, safe & instant money transfers”.

UPI MDR: What are the proposed charges for different transactions?

The revised UPI MDR framework proposes a tiered fee structure based on the type and value of transactions, while keeping everyday digital payments free.

Person-to-Person (P2P) transactions between individuals will continue to attract no fee (0%), irrespective of the transaction amount. Similarly, Person-to-Merchant (P2M) transactions of up to ₹2,000 will remain free, covering most routine purchases.

Small merchants will also be exempt from merchant fees if their collections remain below ₹1 lakh per month for three consecutive months.

For P2M transactions above ₹2,000, the standard MDR is proposed at 0.4%, subject to a maximum charge of ₹300. The cap would apply to transactions of ₹75,000 or more, limiting the fee on higher-value payments.

Certain sectors with low margins or specialised payment requirements will have lower charges. Utilities, telecom, insurance, fuel, railways and education will attract a flat ₹5 fee for transactions above ₹2,000. Meanwhile, mutual fund and stock brokerage payments will carry an MDR of 0.02%, also capped at ₹300.

Trade leaders meet Sitharaman over UPI MDR; protest withdrawn

A delegation of senior trade representatives led by Confederation of All India Traders (CAIT) Secretary General and Chandni Chowk MP Praveen Khandelwal met Union Finance Minister Nirmala Sitharaman on Wednesday to raise concerns over the proposed 0.40% MDR on UPI transactions above ₹2,000, according to ANI.

Following the meeting, the All India Consumer Products Federation (AICPDF) and the All India Mobile Retailers Association (AIMRA) withdrew their earlier call for a “No UPI Day” protest on October 2.

Khandelwal said the decision followed what he described as constructive discussions with the Finance Minister and an assurance that the concerns raised by traders would be considered.

Around 20 senior trade leaders from various states attended the meeting, which was held at the Finance Minister’s office in Kartavya Bhawan, New Delhi.