UPI Transactions Record 6 Billion Mark In July PM Modi said this accomplishment indicates the collective resolve of the people of India to embrace new technologies and make the economy cleaner
By Teena Jose
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The transactions on the unified payments interface (UPI) recorded the 6 billion mark in July 2022, reported as the highest ever by India's flagship digital payments platform since its inception. As per national payment corporation of India (NPCI), UPI processes 628 crore transactions worth INR 10.63 lakh crore during the month. PM Narendra Modi praised the achievement.
"This is an outstanding accomplishment. It indicates the collective resolve of the people of India to embrace new technologies and make the economy cleaner. Digital payments were particularly helpful during the Covid-19 pandemic," PM tweeted on 2nd August.
As per data released by NPCI, UPI reported 6.28 billion transactions amounting to INR 10.62 trillion. The month-on-month volume of transactions raised to 7.16 per cent and the value shot up 4.76 per cent. The year-on-year volume of transactions almost doubled and value of transactions increased to 75 per cent.
In July 2022, the NPCI confirmed its plans to operationalize the linking of credit cards with UPI network. The plan came right after the announcement of RBI governor, on allowing the linking of credit cards to UPI in order to facilitate payments. This, reportedly, will likely to impact the average size of UPI transactions, which is currently valued at INR 2050 per transaction.
"The payments body will aim to protect the smaller merchant from MDR, while existing credit card servicing merchants can continue to pay these rates. While credit cards attract higher MDR charges for merchants, the UPI does not deduct additional charges. Despite the announcement for linking UPI with credit cards, there is no clarity on whether credit card transactions made from UPI will attract MDR," said Dilip Asbe, CEO of NPCI, stating the future expectations of linking UPI with credit cards.
As per reports, the Reserve Bank of India's digital payments index (DPI), which indicates the rapid adoption of the digitization of payments across the country, increased to 349.30 as of March 2022, as against 304.06 in September 2021.
