UPI usage holds steady in September despite backlash over new MDR norms | Finance News
Despite the backlash over the merchant discount rate (MDR) on Unified Payments Interface (UPI) transactions, cumulative UPI usage has not taken a hit so far, shows data.
UPI processed an average 802 million transactions a day in September, about 1 per cent more than the 792 million a day over the same period in August, data from the National Payments Corporation of India (NPCI) and Reserve Bank of India (RBI) shows.
The comparison covers the first 29 days of both months for a like-for-like reading. Data for September 30 was not available at the time of writing.
NPCI published the MDR framework for UPI on September 15, a day after a gazette notification paved the way for banks to levy charges on UPI. It set a 0.4 per cent fee on person-to-merchant payments above ₹2,000 starting October 15.
Since the framework, daily volumes over the fortnight averaged 777.6 million, compared to 777.9 million in August.
The data shows a dip in the middle of September. Daily transactions fell from an average of 828.1 million in the first half of September to a low of 748.85 million on September 24.
A similar pattern repeated in the previous month. In August, volumes slid from about 807.4 million a day in its first half to 745 million on August 29, before jumping to 792 million on August 31. The value touched ₹1.23 trillion that day.
This comes as users spend more at the start and end of the month, when salaries are credited and rent, recurring payments, and utility bills are paid, and hold back in between.
In value terms too, UPI has held firm. Transactions worth ₹28.21 trillion were processed between September 1 and 29, about 1.3 per cent more than the ₹27.86 trillion over the same period in August.
Daily value averaged ₹89,067 crore since September 15 (September 15-29), about 2 per cent more than the ₹87,378 crore over the same period in August.
