UPI Transactions See Marginal Dip To 18.40 Bn In June

The Unified Payments Interface (UPI) transactions saw a marginal dip to 18.40 Bn in June from an all-time high of 18.68 Bn in the previous month. On a year-on-year basis, the transactions count jumped 32%.

The transactions count in the month under review is 2.9% higher from 17.89 Bn transactions recorded in the month of April.

As per the data released by the National Payments Corporation Of India (NPCI), the UPI transactions in June accounted for INR 24.04 Lakh Cr, 4.4% decline from INR 25.14 Lakh Cr worth transactions recorded in the previous month.

However, the average daily transaction count jumped to 613 Mn in June, from 602 Mn in May.

Besides, the average daily transaction value stood at INR 80,131 Cr.

The Digital Payment Landscape

While India is already leading the digital payment race and assisting other nations to match the pace, the country is now working on the efficiency of UPI.

Speaking at the Digital Payments Award 2025, finance minister Nirmala Sitharaman said that India now accounts for half of all real-time digital payments (48.5%) in the world and over 35 Cr users are part of the Unified Payment Interface (UPI) ecosystem.

“UPI is now accepted at select merchant outlets in seven countries including Bhutan, France Mauritius Nepal Singapore Sri Lanka and the UAE,” she added.

Last month, the NPCI introduced new mandatesto reduce the response time for processing UPI payments. As per the new mandates, remitter banks, beneficiary banks as well as payer and payee payment service providers (PSPs) have been directed to reduce response time for UPI APIs initiated by the NPCI to as low as 10 seconds for certain transactions.

Besides, a report also speculated that the government is considering levying a merchant discount rate (MDR) on UPI transactions above INR 3,000.However, the finance ministry refuted the claims and called the report speculative, baseless and misleading.

Earlier this year, the Payment Councils of India (PCI)wrote to Prime Minister Narendra Modi to reconsider the zero MDR regime for UPI and RuPay transactions.

The MDR is the fee charged to merchants by banks or payment service providers for processing digital transactions through UPI. In 2020, the fee was brought down to zero to promote digital payments in the country.

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