The Unified Payments Interface (UPI) crossed the 10-million mark in terms of transaction volumes in June, National Payments Corporation of India (NPCI) said on Monday. The payment channel, which allows instant money transfer from one bank account to another, together with transactions through the Unstructured Supplementary Service Data (USSD) channel, clocked 10.35 million transactions in June. In May, the corresponding figure was 9.39 million, according to data released earlier by the Reserve Bank of India (RBI).
The transaction volume of the UPI channel stood at less than a million at the time of its launch in August 2016, the NPCI said. The UPI was launched with 21 banks on board, and at present, about 50 banks offer the service. The organisation did not reveal the total value of transactions for June. UPI and USSD transactions added up to Rs 2,801.67 crore in May, according to data available with the RBI.
“UPI merchant base is growing at a rapid pace. Out of the total UPI transaction volume, about 22% are merchant-based,” NPCI said in a release. In May, NPCI chief operating officer Dilip Asbe had told FE that between 15% and 20% of the volumes on the UPI come from merchant payments. “We have to still cover the top 300 merchants on the UPI to offer UPI payments, which I expect we will enable in the next two to three months,” he had said.
Digital payments jump 55% in FY17
According to a separate release from the Federation of Indian Chambers of Commerce and Industry, the NITI Aayog has found that the volume of digital payments saw a 55% growth in 2016-17. Compared to that, the five-year period ended 2015-16 saw a compound annual growth rate of 28%. As per NITI Aayog’s evaluation, the outstanding stock of currency in circulation dropped to 8.8% in 2016-17 from around 12% of the gross domestic product (GDP) during 2011-12 to 2015-16.
Policy on digital payment fee soon, says NITI Aayog official
The government will soon come out with a policy on the fee being charged for different modes of digital payments, a Niti Aayog official said on Monday, reports PTI. Government think tank NITI Aayog has submitted a research report on digital payment trends and challenges to the government. According to the research report, one of the major issues impacting digital transactions is the fee on digital payments. Digital payments through RTGS, NEFT and debit cards attract different charges.
“The government is currently evaluating these charges and will soon come out with suitable policy suggestions,” NITI Aayog principal adviser, social sector, Ratan P Watal said at an event here. “In the research report, we (NITI Aayog) have also recommended that the digital payments data should be disseminated at a disaggregated level,” Watal, the former finance secretary, said.