UPI transactions decline 1.8% to 2,407 crore in September

Unified Payments Interface (UPI) transactions declined 1.8% month-on-month to 2,407 crore in September, compared with 2,450 crore transactions in August, according to data released by the Reserve Bank of India (RBI) on Thursday.

The overall value of transactions processed through UPI also fell during the month. Transaction value declined 1.5% to ₹29.37 lakh crore in September from ₹29.82 lakh crore in August, the data showed.

UPI is operated by the National Payments Corporation of India (NPCI) and has emerged as India's largest digital payments platform by transaction volumes.

Daily UPI transactions rise in September

The month-on-month decline in overall transaction volumes comes partly against the backdrop of September having 30 days compared with 31 days in August.

On a daily average basis, UPI transactions actually increased during the month. Average daily transactions stood at around 802 million in September, compared with about 791 million in August.

The latest figures come around a fortnight ahead of the implementation of the new merchant discount rate (MDR) framework for high-value UPI payments.

Under the new framework, charges will apply to certain high-value merchant transactions, although the changes do not mean that consumers will be charged for making UPI payments.

IMPS, RTGS and NEFT transactions

The RBI data also showed activity across other major electronic payment systems during September.

The Immediate Payment Service (IMPS), also operated by NPCI, recorded 35.40 crore transactions during the month, involving a total value of ₹7.05 lakh crore.

The RBI-operated Real Time Gross Settlement (RTGS) system recorded 3.25 crore transactions with a total value of ₹235.71 lakh crore in September.

Meanwhile, the National Electronic Funds Transfer (NEFT) system recorded 86.2 crore transactions, with the total value of transactions standing at ₹46.75 lakh crore, according to the RBI data.

The September figures come as UPI continues to handle billions of transactions every month, with the platform's daily volumes remaining elevated despite the decline in the headline monthly number.

(With inputs from PTI.)