Will UPI Transactions Be Charged? Right here’s What Finance Ministry Says | Private Finance Information
New Delhi: The Finance Ministry on Wednesday mentioned that “hypothesis and claims that the MDR (service provider low cost fee) will probably be charged on UPI transactions are utterly false, baseless, and deceptive”. “Such baseless and sensation-creating speculations trigger pointless uncertainty, concern and suspicion amongst our residents. The Authorities stays absolutely dedicated to selling digital funds through UPI,” the Finance Ministry said.
The official rebuttal was issued following a number of reviews circulated on-line claiming that the federal government was planning to impose MDR on large-ticket UPI transactions. MDR is a payment that banks cost retailers for processing funds in actual time. Earlier, retailers used to pay an MDR payment amounting to 1 per cent of the whole transaction worth on card funds. However in 2020, the federal government waived off MDR expenses to advertise digital funds within the nation.
In the meantime, UPI processed 18.68 billion transactions in Might, in accordance with knowledge launched by NPCI on Sunday. In worth phrases, UPI transactions totalled Rs 25.14 lakh crore in Might, up from Rs 23.95 lakh crore in April, in accordance with knowledge launched by NPCI on Sunday.
The Might figures additionally mark a 33 per cent year-on-year soar in transaction quantity, in comparison with 14.03 billion transactions recorded in the identical month final yr. The typical day by day transaction quantity for Might stood at Rs 81,106 crore, whereas the common day by day transaction quantity was 602 million.
The Unified Funds Interface (UPI) strengthened its dominance in India’s digital funds system with its share within the whole transaction quantity rising to 83.7 per cent in 2024-25 from 79.7 per cent within the earlier monetary yr.
The RBI’s annual report reveals that UPI facilitated 185.8 billion transactions throughout 2024-25, which represents a 41 per cent year-on-year enhance. In worth phrases, UPI transactions rose to Rs 261 lakh crore from Rs 200 lakh crore in FY24.
“The success of UPI positioned India in a management place with a share of 48.5 per cent in international real-time funds by quantity,” the RBI mentioned. Whole digital funds within the nation, together with transactions by way of fee methods, card networks, and pay as you go fee devices (PPIs), grew 35 per cent to 221.9 billion in FY25, from 164.4 billion transactions in FY24. In worth phrases, whole digital funds surged 17.97 per cent to Rs 2,862 lakh crore.
