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Economic Times
01-08-2025
- Business
- Economic Times
UPI transactions rebound in July after June dip
Agencies The Unified Payments Interface (UPI) posted an increase in both transaction volume and value in July, rebounding from a decline in June, according to data released Friday by the payment railroad's operator, the National Payments Corporation of India (NPCI).The platform processed 19.47 billion transactions in July, up from 18.40 billion the previous month. Transaction value rose to Rs 25.08 lakh crore from Rs 24.04 lakh crore in June. On a year-on-year basis, transaction volume rose 35%, while value grew 22%. The average daily transaction volume stood at 628 million, with a daily average value of Rs 80,919 crore. The uptick comes amid growing discussions around the cost of processing UPI transactions. Banks are beginning to levy charges on certain UPI transactions due to a cut in the government incentive for processing small-value UPI-based finance ministry has reduced the incentive for processing small-ticket UPI transactions at small merchant outlets to 0.15% per transaction from 0.25% last year, ET reported on Friday. ICICI Bank has started passing on some of the charges to its payment partners, news platform The Head and Tale reported earlier this week. Other digital payment channels also recorded growth in July, excluding Immediate Payment Service (IMPS) processed 482 million transactions worth Rs 6.31 lakh crore, compared with 448 million transactions and Rs 6.06 lakh crore in June. Transactions via the Aadhaar Enabled Payment System (AePS) rose to 103 million from 97 transactions declined to 371 million from 386 million the previous month. Last month, ET reported that Fastag's growth had stagnated, with minimal traction in the last financial year due to the lack of new use cases beyond toll its launch in 2016, UPI has grown rapidly, driven by government initiatives following demonetisation, increasing smartphone penetration and adoption by private players such as Google Pay, PhonePe and Paytm. As of May 31, UPI had 65 shareholders, including public sector, private and foreign the financial year ended March 2025, NPCI reported a 41.7% increase in net profit to Rs 1,552 crore, as per credit ratings firm ICRA. As a not-for-profit entity, NPCI classifies profits as revenue surplus. Its standalone revenue rose 19% to Rs 3,270 crore in FY25 from Rs 2,749 crore in of July, Google Pay and PhonePe continued to dominate the UPI ecosystem, together accounting for more than 80% of the market. Emerging players such as Flipkart-backed Navi, Bhim and Cred are gradually expanding their presence by offering cashbacks and other incentives. NPCI has yet to release app-wise transaction data for discussions around the long-term sustainability of UPI have gained momentum. Speaking at an event in Mumbai last week, Reserve Bank of India governor Sanjay Malhotra highlighted the need to make UPI payments financially viable, suggesting that either the government or end-users would have to bear the cost of running the digital payments industry has also been urging the government to reinstate the merchant discount rate on UPI payments. However, the government has reiterated that UPI will continue to be free for platform has experienced service disruptions in recent months, affecting all major UPI apps and several banking applications. NPCI attributed a major outage on April 12 to a surge in application programming interface (API) requests, particularly from banks excessively using the 'Check Transaction' API, which led to a slowdown in the system and a drop in payment success rates. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. US tariff hike to hit Indian exports, may push RBI towards rate cuts Is Bajaj Finance facing its HDFC Bank moment? Tata Motors' INR38k crore Iveco buy: Factors that can make investors nervous Trump tariffs: End of road or a new journey ending Russia reliance? Stock Radar: PI Industries stock showing signs of momentum; takes support above 50-DEMA – time to buy? Long-term investing: Volatility, even threats, have limited shelf life; 5 large-caps from different sectors with upside potential of up to 38% These large- and mid-cap stocks can give more than 21% return in 1 year, according to analysts Weekly Top Picks: These stocks scored 10 on 10 on Stock Reports Plus
Time of India
01-08-2025
- Business
- Time of India
UPI transactions rebound in July after June dip
Academy Empower your mind, elevate your skills The Unified Payments Interface (UPI) posted an increase in both transaction volume and value in July, rebounding from a decline in June, according to data released Friday by the payment railroad's operator, the National Payments Corporation of India (NPCI).The platform processed 19.47 billion transactions in July, up from 18.40 billion the previous month. Transaction value rose to Rs 25.08 lakh crore from Rs 24.04 lakh crore in a year-on-year basis, transaction volume rose 35%, while value grew 22%. The average daily transaction volume stood at 628 million, with a daily average value of Rs 80,919 uptick comes amid growing discussions around the cost of processing UPI transactions. Banks are beginning to levy charges on certain UPI transactions due to a cut in the government incentive for processing small-value UPI-based finance ministry has reduced the incentive for processing small-ticket UPI transactions at small merchant outlets to 0.15% per transaction from 0.25% last year, ET reported on Friday. ICICI Bank has started passing on some of the charges to its payment partners, news platform The Head and Tale reported earlier this digital payment channels also recorded growth in July, excluding Immediate Payment Service (IMPS) processed 482 million transactions worth Rs 6.31 lakh crore, compared with 448 million transactions and Rs 6.06 lakh crore in June. Transactions via the Aadhaar Enabled Payment System (AePS) rose to 103 million from 97 transactions declined to 371 million from 386 million the previous month. Last month, ET reported that Fastag's growth had stagnated, with minimal traction in the last financial year due to the lack of new use cases beyond toll its launch in 2016, UPI has grown rapidly, driven by government initiatives following demonetisation, increasing smartphone penetration and adoption by private players such as Google Pay, PhonePe and Paytm. As of May 31, UPI had 65 shareholders, including public sector, private and foreign the financial year ended March 2025, NPCI reported a 41.7% increase in net profit to Rs 1,552 crore, as per credit ratings firm ICRA. As a not-for-profit entity, NPCI classifies profits as revenue surplus. Its standalone revenue rose 19% to Rs 3,270 crore in FY25 from Rs 2,749 crore in of July, Google Pay and PhonePe continued to dominate the UPI ecosystem, together accounting for more than 80% of the market. Emerging players such as Flipkart-backed Navi, Bhim and Cred are gradually expanding their presence by offering cashbacks and other incentives. NPCI has yet to release app-wise transaction data for discussions around the long-term sustainability of UPI have gained momentum. Speaking at an event in Mumbai last week, Reserve Bank of India governor Sanjay Malhotra highlighted the need to make UPI payments financially viable, suggesting that either the government or end-users would have to bear the cost of running the digital payments industry has also been urging the government to reinstate the merchant discount rate on UPI payments. However, the government has reiterated that UPI will continue to be free for platform has experienced service disruptions in recent months, affecting all major UPI apps and several banking applications. NPCI attributed a major outage on April 12 to a surge in application programming interface (API) requests, particularly from banks excessively using the 'Check Transaction' API, which led to a slowdown in the system and a drop in payment success rates.
Hans India
24-07-2025
- Business
- Hans India
ED slaps case against Myntra over Rs 1,654-cr FDI 'violation'
New Delhi: The Enforcement Directorate on Wednesday said it has registered a case against Flipkart-backed e-commerce platform Myntra, its linked companies and directors for alleged FDI violation of over Rs 1,654 crore. The complaint was filed by the federal probe agency's Bengaluru zonal office under a section of the Foreign Exchange Management Act (FEMA) based on "credible information".
News18
23-07-2025
- Business
- News18
ED files case against Myntra over Rs 1,654-crore FDI violation
New Delhi, Jul 23 (PTI) The Enforcement Directorate on Wednesday said it has registered a case against Flipkart-backed e-commerce platform Myntra, its linked companies and directors for alleged FDI violation of over Rs 1,654 crore. The complaint was filed by the federal probe agency's Bengaluru zonal office under a section of the Foreign Exchange Management Act (FEMA) based on 'credible information" that Myntra Designs Private Limited, whose brand name is Myntra, and its related companies are doing multi-brand retail trade in the guise of 'wholesale cash and carry". This is in alleged violation of Foreign Direct Investment (FDI) guidelines and provisions of the FEMA, the agency said in a statement. At present, the country's FDI policy does not permit FDI in the inventory-based model of e-commerce. It is allowed only in firms that are operating through a marketplace model. A spokesperson of the Bengaluru-headquartered Myntra, a fashion and lifestyle e-commerce platform, said the company will cooperate with the authorities. 'At Myntra, we are deeply committed to upholding all applicable laws of the land and operating with the highest standards of compliance and integrity." 'While we have not received a copy of the subject complaint and the supporting documents from the authorities, we remain fully committed to cooperating with them at any point of time," the spokesperson said in a statement. The ED said Myntra Designs had declared that it was engaged in the business of 'wholesale cash and carry" and it received Rs 16,54,35,08,981 FDI. The company sold the majority of its items to a company named Vector E-Commerce, which sold the goods in retail to the ultimate customer, according to the agency. Vector E-Commerce and Myntra Designs are 'related parties" and belong to the same group or group of companies, it claimed. According to the ED findings, Vector E-Commerce was 'created and continued to be used" as a corporate entity to bifurcate the B2C (business to customer i.e. Myntra Designs to retail customers) transaction into B2B (Myntra Designs to Vector E-Commerce) and then B2C (Vector E-Commerce to retail customers). Even otherwise, the ED said, Myntra Designs has 'not satisfied" the condition laid down for 'wholesale cash and carry trading' as it has made cent per cent sales to Vector E-Commerce. This was in 'contravention" of amendments which permitted only 25 per cent sale to companies belonging to the same group or group companies, it said. Myntra Designs and others have 'contravened" the provisions according to Section 6(3)(b) of the FEMA and the FDI policy to the tune of Rs 16,54,35,08,981, it said. The Confederation of All India Traders (CAIT) has time and again alleged that foreign online retailers violate FDI norms in e-commerce and that the government should take action against those indulging in malpractices such as deep discounting and predatory pricing. The accused companies have denied violating Indian laws. Founded in 2007 and now part of the Flipkart Group, owned by Walmart, Myntra is stated to have over 70 million monthly active users and a catalogue of more than 3.9 million styles from over 9,700 brands. The Myntra spokesperson said that as a homegrown marketplace, the company was committed to contributing to India's nation-building efforts by empowering the textile and apparel ecosystem through digital commerce. 'By working closely with Indian brands and sellers, artisans and weavers, we have helped bring traditional craftsmanship to a global audience, particularly among the Indian diaspora. 'In doing so, we've strengthened the industry's digital backbone and created large-scale employment and entrepreneurship opportunities across the country," the spokesperson said. PTI NES RR PRS ANK DIV DIV view comments First Published: July 23, 2025, 18:30 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
News18
23-07-2025
- Business
- News18
ED files FEMA case against Myntra over Rs 1,654-crore FDI violation
New Delhi, Jul 23 (PTI) The Enforcement Directorate (ED) on Wednesday said it has registered a FEMA case against Flipkart-backed e-commerce platform Myntra, its linked companies and directors for alleged FDI contravention of over Rs 1,654 crore. The federal probe agency said in a statement that the complaint was filed by its Bengaluru zonal office under Section 16(3) of the Foreign Exchange Management Act (FEMA) acting on 'credible information" that Myntra Designs Private Limited, whose brand name is Myntra, and its related companies are doing multi-brand retail trade in the guise of 'wholesale cash and carry". This is in alleged violation of extant Foreign Direct Investment (FDI) guidelines and provisions of the FEMA, the agency said in a statement. A spokesperson of the Bengaluru-headquartered Myntra, a fashion and lifestyle e-commerce platform, said in a statement that the company is 'deeply committed to upholding all applicable laws of the land and operating with the highest standards of compliance and integrity". 'While we have not received a copy of the subject complaint and the supporting documents from the authorities, we remain fully committed to cooperating with them at any point of time," the spokesperson said. The ED said Myntra Designs Pvt. Ltd. had declared that it was engaged in the business of 'wholesale cash and carry" and it invited and received Rs 16,54,35,08,981 FDI from foreign investors. The company sold the majority of its goods to Vector E-Commerce Pvt. Ltd., which sold the goods in retail to the ultimate customer, according to the agency. 'Vector E-Commerce Pvt. Ltd. and Myntra Designs Pvt. Ltd. are related parties and belong to the same group or group of companies," it said. According to the ED findings, Vector E-Commerce Pvt. Ltd. was 'created and continued to be used" as a corporate entity to bifurcate the B2C (business to customer i.e. Myntra Designs Pvt. Ltd. to retail customers) transaction into B2B (Myntra Designs Pvt. Ltd. to Vector E-Commerce Pvt. Ltd.) and then B2C (Vector E-Commerce Pvt. Ltd. to retail customers). Even otherwise, the ED said, Myntra Designs Pvt. Ltd. has 'not satisfied" the condition laid down for 'wholesale cash and carry trading' as it has made cent per cent sales to Vector E- Commerce Pvt. Ltd., which is in 'contravention" of amendments dated 01.04.2010 and 01.10.2010 which permitted only 25 per cent sale to companies belonging to the same group or group companies. Myntra Designs Pvt. Ltd. and others have 'contravened" the provisions according to Section 6(3)(b) of the FEMA and the consolidated FDI policy dated 01.04.2010 and consolidated FDI policy dated 01.10.2010 to the tune of Rs 16,54,35,08,981, it said. At present, the country's FDI policy does not permit foreign direct investment in the inventory-based model of e-commerce. It is allowed only in firms that are operating through a marketplace model. Founded in 2007 and now part of the Flipkart Group, owned by Walmart, Myntra is stated to have over 70 million monthly active users and a catalogue of more than 3.9 million styles from over 9,700 brands. The Myntra spokesperson said that as a homegrown marketplace, the company was committed to contributing to India's nation-building efforts by empowering the textile and apparel ecosystem through digital commerce. 'By working closely with Indian brands and sellers, artisans and weavers, we have helped bring traditional craftsmanship to a global audience, particularly among the Indian diaspora. 'In doing so, we've strengthened the industry's digital backbone and created large-scale employment and entrepreneurship opportunities across the country," the spokesperson said. PTI NES RR PRS ANK DIV DIV view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
