Latest news with #ImmediatePaymentService
India.com
10 hours ago
- Business
- India.com
Bad news for SBI customers! from August 15 pay these charges on online payment transactions; know full details over here
If you have an account with the State Bank of India (SBI), this update is important for you. According to the bank's announcement, IMPS (Immediate Payment Service) transaction charges for retail customers will be revised from August 15. For corporate customers, the changes will take effect on September 8. These revisions are expected to impact nearly 40 crore SBI customers. No charge For Transactions Up To Rs 25,000 For retail customers using Internet banking or the YONO app, there will be no charge for transactions up to Rs 25,000. For transfers above Rs 25,000, charges will apply: From Rs 25,000 to Rs 1 lakh – Rs 2 + GST From Rs 1 lakh to Rs 2 lakh – Rs 6 + GST From Rs 2 lakh to Rs 5 lakh – Rs 10 + GST Different Rules For Branch Transactions If you carry out transactions at an SBI branch, there will be no charge for amounts up to Rs 1000. For higher amounts, the charges will be: Rs 1,000 to Rs 10,000 – Rs 2 + GST Rs 10,000 to Rs 25,000 – Rs 4 + GST Rs 25,000 to Rs 1 lakh – Rs 4 + GST Rs 1 lakh to Rs 2 lakh – Rs 12 + GST Rs 2 lakh to Rs 5 lakh – Rs 20 + GST Exemptions For Specific Account Holders SBI has waived IMPS charges for certain special salary accounts when transactions are done through online modes. These include Defence Salary Package, Police Salary Package, Central Government Salary Package, and Shaurya Family Pension accounts. The same revised charges will apply to corporate customers starting September 8. However, certain current accounts like Gold, Diamond, Platinum, and Rhodium along with government departments and legal entities, will be exempt from IMPS charges for online transactions.
Hans India
12 hours ago
- Business
- Hans India
SBI to revise IMPS charges from August 15 for certain transactions
New Delhi: The State Bank of India (SBI) will revise Immediate Payment Service (IMPS) charges for retail customers from August 15, introducing nominal fees for certain online high-value transactions while keeping small-value transfers free. All customers will continue to receive free online IMPS transfers up to Rs 25,000 under the new arrangement. According to media reports, charges will apply, though, for amounts over Rs 25,000: Rs 2 + GST for transactions over Rs 25,000 and up to Rs 1 lakh, Rs 6 + GST for amounts over Rs 1 lakh and up to Rs 2 lakh, and Rs 10 + GST for transfers over Rs 2 lakh and up to Rs 5 lakh. The revised rates do not apply to salary package account holders of various government, defence, and corporate categories, who will continue to enjoy waivers for online IMPS transfers, the reports said. This includes all variants of Defence Salary Package (DSP), Para Military Salary Package (PMSP), Indian Coast Guard Salary Package (ICGSP), Central Government Salary Package (CGSP), Police Salary Package (PSP), Railway Salary Package (RSP), Shaurya Family Pension Accounts, Corporate Salary Package (CSP), State Government Salary Package (SGSP), Startup Salary Package (SUSP), and Family Savings Account–SBI Rishtey. With fees ranging from Rs 2 + GST for the lowest slab to Rs 20 + GST for the highest, branch IMPS charges have not changed. The National Payments Corporation of India (NPCI) offers IMPS, a real-time payment system that is accessible around the clock and has a Rs 5 lakh transaction limit (apart from SMS and IVR channels). While branch, ATM, and IVR transactions don't require any setup in advance, customers who use mobile banking, internet banking, or SMS banking must first register, the reports stated. For transactions under Rs 1,000, Canara Bank currently provides free IMPS. After that, fees range from Rs 3 + GST (between Rs 1,000 and Rs 10,000) to Rs 20 + GST (between Rs 2 lakh and Rs 5 lakh). Higher-value transactions cost Rs 12 + GST at branches and Rs 10 + GST online. The Punjab National Bank waives fees for transactions up to Rs 1,000 and charges Rs 6 + GST in branches or Rs 5 + GST online for amounts up to Rs 1 lakh. Customers are encouraged to review the updated rates in light of SBI's changes to maximise the exemptions that apply to their account category and prevent unforeseen deductions.
News18
21-07-2025
- Business
- News18
How India's Homegrown UPI Became The World's Top Real-Time Payments System
With over 640 million transactions a day, India's UPI has now overtaken Visa in volume. In June 2025, it recorded 18.39 billion transactions worth Rs 24 lakh crore India's Unified Payments Interface (UPI), launched less than a decade ago, has now become the world's most used real-time payment system. In its July 2025 report titled Growing Retail Digital Payments: The Value of Interoperability, the International Monetary Fund (IMF) revealed that UPI now powers 85 per cent of India's digital payments and nearly 60 per cent of global real-time digital transactions. UPI is processing over 640 million transactions every day, surpassing global giant Visa, which sees about 639 million daily. In June 2025, UPI recorded 18.39 billion transactions worth Rs 24 lakh crore, marking a 32 per cent year-on-year jump compared to June 2024. So, what's the story behind this fintech phenomenon? How did a public digital infrastructure, created by a government-backed body, beat multinational corporations at their own game? Here's a deep dive into the rise of UPI. What Is UPI And How Does It Work? Unified Payments Interface (UPI) is a real-time payment system developed by the National Payments Corporation of India (NPCI) and made available to the public in August 2016. Built atop the Immediate Payment Service (IMPS) infrastructure, UPI allows users to link multiple bank accounts into one mobile app, enabling instant fund transfers, peer-to-peer payments, merchant transactions, and even recurring bill payments. Unlike traditional card-based systems that involve intermediaries and longer settlement periods, UPI facilitates instant and direct bank-to-bank transactions, 24×7, including holidays. The key innovation lies in interoperability. UPI is not restricted to a particular bank or app. Whether using Google Pay, PhonePe, Paytm, BHIM, or any other UPI-enabled application, users can transfer money across platforms without friction. The Genesis: Why Was UPI Launched? The seeds of UPI were sown in the years following India's push for financial inclusion and digitisation. NPCI, a not-for-profit umbrella body promoted by the Reserve Bank of India and Indian Banks' Association, had already rolled out the IMPS system and RuPay cards. But a need was felt for a more scalable, flexible, and user-friendly payment system that could integrate multiple services into a single interface. The real push came post-2014, as the Digital India mission gained momentum and the Pradhan Mantri Jan Dhan Yojana (PMJDY) brought millions of Indians into the formal banking system. UPI emerged as the ideal next step to connect those bank accounts to a seamless digital payment ecosystem. Former RBI Governor Raghuram Rajan, who was at the helm when UPI was conceptualised, had called it a 'revolution" for retail payments in India. Speaking at an event in 2016, he said, 'The country has the most sophisticated public payment infrastructure in the world, which can be accessible to anyone who enters the system." Pandemic Push And The UPI Boom While UPI was gaining steady traction in its early years, the Covid-19 pandemic acted as a major catalyst. With physical distancing, lockdowns, and a sudden aversion to cash handling, digital payments skyrocketed. UPI saw exponential growth between 2020 and 2022, reaching over 6 billion monthly transactions by late 2022. With zero cost to users, wide availability across urban and rural India, and support in multiple languages, UPI became the go-to for both consumers and small businesses. The government's push to promote QR code-based payments, especially through schemes like PM SVANidhi for street vendors, also brought millions of informal economy participants into the fold. By 2023, UPI had outpaced debit and credit card transactions in both volume and value, according to Reserve Bank of India's Annual Report. The Numbers: UPI's Record-Breaking Growth As of June 2025: UPI powers over 85 per cent of India's digital retail payments, and it is now accepted by over 500 million users. The NPCI's vision of open architecture and standardised APIs (Application Programming Interfaces) has allowed private players like PhonePe and Google Pay to thrive while keeping the underlying system neutral and publicly governed. Why UPI Succeeded Where Others Struggled Interoperability and Open Access The IMF report highlights interoperability as a key driver behind UPI's growth, noting that it 'supports the adoption of digital payments by increasing users' freedom to choose their favourite app" and fosters an ecosystem where 'more providers join and improve, offering better features and security" UPI's meteoric rise was also driven by its zero-cost structure. Since January 2020, the Indian government has enforced a no Merchant Discount Rate (MDR) policy on UPI transactions, meaning merchants are not charged any fees, even for small-value or high-volume payments. The Finance Ministry has repeatedly clarified that there is no plan to impose MDR, calling reports to the contrary 'completely baseless and misleading". With no charges for consumers and no burden on merchants, UPI emerged as the most economical way to transact digitally across income levels and geographies. Its intuitive, multilingual user interfaces further helped it penetrate rural areas, tier-2 and tier-3 towns, and digitally underserved communities. Combined with low data usage, rapid onboarding via Aadhaar-linked bank accounts, and government-supported promotion drives, UPI's frictionless design made it the default payment mode for everything from street vendors to supermarkets. Strong Regulatory Backing Beyond cost advantages and interoperability, UPI's expansion has been actively enabled by targeted government schemes and RBI-led mandates aimed at reaching the informal and underserved segments of the economy. One key intervention was the PM SVANidhi scheme, launched in June 2020, which offers financial incentives to street vendors who adopt digital payments. By linking cashback rewards to UPI transactions, the scheme helped digitise payments in India's vast informal sector. The Reserve Bank of India has also pushed for UPI's integration into feature phones through services like UPI 123Pay, allowing users without smartphones or internet access to make digital transactions using IVR and missed call systems. These innovations have expanded UPI's reach beyond urban centres. Such regulatory and policy measures, focused on inclusion, infrastructure, and behavioural nudges, have ensured UPI's adoption across a wide spectrum of India's population. UPI Goes Global: From Singapore To France UPI's success story isn't confined to India's borders. According to the IMF report, UPI is now live in seven countries: United Arab Emirates Singapore Bhutan Nepal Sri Lanka France Mauritius Its entry into France is particularly notable; it marks UPI's first step into Europe. Tourists and Indian expats can now make payments using Indian bank accounts in outlets accepting UPI, bypassing the need for currency exchange or international cards. The NPCI, via its international arm NPCI International Payments Ltd (NIPL), has been proactively signing agreements with foreign governments and payment gateways. The UAE's Mashreq Bank and Singapore's PayNow are among the first partners. What Lies Ahead for UPI? BRICS Standardisation Drive India is actively advocating for UPI to be recognised as a standard payments platform within BRICS, which recently expanded to include six new member nations. This initiative is part of the broader BRICS Pay agenda aimed at establishing a shared digital payments system. If successful, the move could: Lower costs of remittances across member countries Enable seamless cross-border merchant transactions Elevate India's global fintech influence UPI–e‑Rupee Integration The Reserve Bank of India is integrating UPI with the e‑Rupee (India's retail Central Bank Digital Currency), which began its pilot in December 2022. Currently, users can: Scan UPI QR codes using e‑Rupee wallets for P2P and P2M transactions, settled via the UPI backend Leverage the existing UPI infrastructure to scale e‑Rupee usage—the RBI aims to increase daily CBDC transactions from around 10,000 to 1 million The strategy combines UPI's unparalleled convenience with CBDC's programmability and traceability, potentially creating a sophisticated and inclusive digital money ecosystem. Final Word top videos View all In just nine years, UPI has achieved what many multibillion-dollar payment giants couldn't in decades—creating a unified, inclusive, and globally scalable real-time payments network. With backing from the government, trust from users, and recognition from global institutions, UPI's journey from an Indian innovation to an international benchmark is nothing short of revolutionary. About the Author Karishma Jain Karishma Jain, Chief Sub Editor at writes and edits opinion pieces on a variety of subjects, including Indian politics and policy, culture and the arts, technology and social change. Follow her @ More Get Latest Updates on Movies, Breaking News On India, World, Live Cricket Scores, And Stock Market Updates. Also Download the News18 App to stay updated! tags : digital banking Financial Inclusion imf Unified Payments Interface view comments Location : New Delhi, India, India First Published: July 21, 2025, 14:33 IST News explainers How India's Homegrown UPI Became The World's Top Real-Time Payments System 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
21-07-2025
- Business
- News18
India's UPI Surpasses Visa To Become World's Top Real-Time Payment System: IMF
Last Updated: India's UPI leads fast payments, handling 640 million daily transactions, surpassing Visa. UPI powers 85% of India's digital payments and 60% globally, now live in seven countries. India's real-time payment technology UPI (Unified Payment Interface) has emerged as the global leader surpassing Visa, according to a recent note by the International Monetary Fund titled Growing Retail Digital Payments: The Value of Interoperability. The IMF report states that UPI has powered 85 per cent of India's digital payments and nearly 60 per cent globally. UPI is handling 640+ million transactions daily, head of Visa, the report stated, adding that Rs 24 lakh crore processed via 18.39 billion UPI transactions in June 2025. The transaction percentage rose 32 per cent YOY compared to the same month last year at 13.88 billion. India's Unified Payments Interface is also now the world's number one real-time payment system, the IMF report said. It has surpassed Visa to take the lead in processing daily transactions. UPI handles more than 640 million transactions every day, compared to Visa's 639 million. This scale is extraordinary, especially when you consider that UPI achieved it in just nine years, it added. UPI is a real-time payment system that enables instant money transfers between bank accounts through a mobile application. It is built on the Immediate Payment Service (IMPS) infrastructure. UPI brings multiple bank accounts into a single app and supports various features such as fund transfers, merchant payments and peer-to-peer payment requests, making digital transactions quick and convenient. UPI's Global Acceptance The IMF report highlighted how UPI technology hasn't remained geographically secluded to India, as several nations have also adopted in recent times. The success story does not stop at home, the IMF report added, 'UPI is making its presence felt across borders. It is already live in seven countries, including the UAE, Singapore, Bhutan, Nepal, Sri Lanka, France and Mauritius." Its entry into France is a milestone because it is UPI's first step into Europe. This allows Indians travelling or living there to pay seamlessly without the usual hassles of foreign transactions, it added. India is also pushing for UPI to become a standard within the BRICS group, which now has six new member nations. If this happens, the IMF report said, it will improve remittances, boost financial inclusion and raise India's profile as a global tech leader in digital payments. How Did UPI Revolutionise The Digital Payment? The IMF report explained that UPI connected banks and fintech apps through a common platform managed by NPCI. This openness has two big benefits, it added, 'First, users have the freedom to choose their favourite app, based on trust or ease of use. Second, it creates healthy competition among providers to offer better features and security." Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates—only on News18. Also Download the News18 App to stay updated! tags : UPI view comments Location : New Delhi, India, India First Published: July 21, 2025, 12:04 IST News business » banking-finance India's UPI Surpasses Visa To Become World's Top Real-Time Payment System: IMF 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.
Hans India
12-07-2025
- Business
- Hans India
India leads global payments domain
New Delhi: Thanks to the massive adoption of unified payments interface (UPI) based digital transactions, India now makes faster payments than any other country in the world, an International Monetary Fund (IMF) note has emphasised. Since its launch in 2016, UPI has grown quickly, while some proxies for cash usage have begun to decline. UPI now processes more than 18 billion transactions per month and dominates other electronic retail payments in India, according to the note titled 'Growing Retail Digital Payments: The Value of Interoperability.' UPI is an instant payments platform built over the Immediate Payment Service (IMPS) infrastructure. UPI has transformed the digital payments landscape in India. Evidence from the platform suggests that interoperability can improve users' experience of digital payments and expand overall adoption. 'Interoperability directly increases users' freedom to choose their favourite app, enabling them to take full advantage of the variety and quality of apps available. Interoperability can also facilitate entry by new providers and incentivise existing providers to upgrade their apps, offering indirect benefits to users,' said the IMF note. UPI volumes in June grew 32 per cent year-on-year. Transaction value rose 20 per cent compared to June last year. The number of daily UPI transactions rose to 613 million in June from 602 million in May. As a result, interoperability can make adopting digital payments more attractive for increase overall adoption relative to a world with only closed-loop alternatives.
