India's Unified Payments Interface (UPI) set a new monthly record in the festive month of October, with transaction volumes rising 23 per cent year-on-year to 25.47 billion and the value of payments surging 16 per cent to Rs 31.53 lakh crore, according to data released by the National Payments Corporation of India (NPCI) on Sunday, November 1.

Source: IANS via hi INDiA

On an average day in October, UPI processed around 822 million transactions, with an average daily transaction value of about Rs 1,01,707 crore — underlining how completely phone-based payments now run everyday commerce, from tea stalls and vegetable carts to large retailers.

25.47 billionUPI transactions in October (+23% YoY)
Rs 31.53 lakh croreValue of October UPI payments (+16% YoY)
822 millionAverage UPI transactions per day in October
Rs 7.63 lakh croreIMPS transfers in October (+19% YoY)

In September, UPI had recorded 24.07 billion transactions worth Rs 29.37 lakh crore, with volumes up 23 per cent and value up 18 per cent year-on-year. The instant IMPS transfer system also grew: IMPS moved Rs 7.63 lakh crore in October, up 19 per cent year-on-year, with average daily counts of 12.10 million and an average daily amount of Rs 24,601 crore, the NPCI data showed.

Source: IANS via Asia Post

The NPCI has deferred the introduction of Merchant Discount Rate (MDR) charges on select UPI merchant transactions until after Diwali, giving merchants and shoppers relief through the festive season. Its UPI and Services Steering Committee decided to postpone the rollout, which was originally scheduled to begin on October 15, and the revised date will be announced separately.

Under the proposed framework, select merchant categories including railways, telecom services, insurance and fuel purchases would attract a flat MDR of Rs 5 on UPI transactions above Rs 2,000, while payments to large merchants above the same threshold would carry a charge of 0.4 per cent, capped at Rs 300 per transaction. NPCI has said the structure will have a limited impact on the wider ecosystem: only around 4 per cent of merchant transactions are expected to fall under it, and more than 95 per cent of person-to-merchant UPI payments will remain exempt.

November's figures, due at the start of December, will show whether the festive surge holds once the Diwali season ends — and whether the deferred merchant charges begin to change how shops accept UPI.