UPI sets fresh record with 1.61 Bn transactions worth Rs 2.98 Tn in August

UPI has recorded 1.61 billion transactions amounting to Rs 2,98,307 crore or Rs 2.98 trillion in August shows data released by National Payments Corporation of India (NPCI), a fresh milestone for India’s digital payment railroad since its inception in 2016.

In July, the digital payments railroad had registered 1.49 billion transactions worth Rs 2,90,537 crore or Rs 2.9 trillion in July and 1.34 billion transactions worth Rs 261,835 crore or Rs 2.61 trillion in the previous month.

UPI transactions have picked up steadily after a fall in March and April or during the initial phases of the nationwide lockdown. In April, the number of transactions had fallen to 999 million in which almost all kinds of business activities were abruptly halted.

A key reason for the upswing in transactions is people preferring digital payments, especially UPI, to pay for groceries, medicines, daily essentials to electronics, and gadget buys. 

The wide adoption of Google Pay, PhonePe, Paytm, and other UPI-enabled apps have driven this growth as people have been avoiding swiping plastic cards due to the fear of the pandemic.

Recently, the Central Board of Direct Taxes had issued a circular directing all banks to stop applying any charge on payments made via the prescribed electronic mode of transactions -- UPI, Rupay debit card and QR Code. 

The apex body of direct taxes had also asked banks to refund the charges collected on payments made via UPI, Rupay debit card, QR Code, or as MDR on transactions on or since January 1, 2020.