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Time of India
3 days ago
- Business
- Time of India
UPI powers half of world's real-time transactions, says PM Modi
(You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Prime Minister Narendra Modi on Friday said India's Unified Payments Interface (UPI) now accounts for 50 per cent of all real-time transactions globally. Speaking from the Red Fort on the 79th Independence Day , he said, 'Our UPI platform feels like a wonder to the world today… we have the capability (to become self-reliant).'Launched in 2016, UPI has grown rapidly in both transaction volume and value. In FY25, it recorded 18,587 crore transactions worth ₹261 lakh crore. In July 2025 alone, it processed 1,947 crore transactions. UPI is currently operational in seven countries — the UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, and Mauritius. Its entry into France marks its first presence in Europe, enabling Indians there to make payments without the usual challenges of foreign is operated by the National Payments Corporation of India (NPCI), an initiative of the Reserve Bank of India and the Indian Banks' Association, which manages retail payments and settlement systems in the his address, Modi also spoke about the PM Mudra Yojana , saying crores of people have benefited by starting small businesses. 'Through their small enterprises, they have been able to create jobs,' he said. The scheme offers collateral-free loans of up to ₹20 lakh through Member Lending Institutions to micro and small business units across manufacturing, trading, services, and allied agricultural activities.
Economic Times
6 days ago
- Business
- Economic Times
Groceries, supermarkets lead UPI merchant payments in July; debt collection tops by value
TIL Creatives Groceries and supermarkets emerged as the top category by transaction volume on the Unified Payments Interface (UPI) in July, clocking 3.03 billion transactions worth Rs 64,882 crore, according to merchant category classification data from the National Payments Corporation of India (NPCI).This was followed by fast-food restaurants and eating places. By value, debt collection agencies led the list, collecting Rs 93,857 crore through 161 million transactions. Fast-food restaurants recorded 1.2 billion transactions worth Rs 13,794.2 crore, while eating places and restaurants processed Rs 18,212 crore from 1.1 billion these, telecommunication services registered UPI transactions worth Rs 21,628.8 crore, and service stations saw Rs 35,188 crore in about 2.2 billion transactions worth Rs 3.4 lakh crore were classified under 'others,' indicating the inclusion of additional merchant categories. P2P vs P2M split In total, UPI merchant payments (P2M) stood at 12.38 billion transactions worth Rs 7.34 lakh crore in July. Including person-to-person (P2P) transfers, total UPI volumes reached 19.47 billion transactions worth Rs 25.08 lakh crore. P2P accounted for 7.08 billion transactions worth Rs 17.74 lakh marked an increase in both transaction volume and value compared to June, when total UPI transactions dipped to 18.40 billion worth Rs 24.04 lakh crore. Among remitter banks, State Bank of India (SBI) led with 5.21 billion transactions, followed by HDFC Bank (1.54 billion), Bank of Baroda (1.33 billion), and Union Bank of India (1.2 billion). On the payment service provider side, Axis Bank processed the highest volume at 7.23 billion transactions with a 93.26% approval rate, followed by Yes Bank and ICICI Bank. This comes amid ongoing discussions about the cost of processing UPI transactions. Some banks have begun levying charges on certain UPI payments after the government reduced incentives for processing small-value merchant transactions. As reported by ET earlier this month, the finance ministry cut the incentive for processing small-ticket UPI transactions at small merchant outlets to 0.15% per transaction from 0.25% last year. Other digital payment channels also saw growth in July. Immediate Payment Service (IMPS) transactions rose to 482 million, worth Rs 6.31 lakh crore, from 448 million, worth Rs 6.06 lakh crore, in June. Aadhaar Enabled Payment System (AePS) transactions increased to 103 million from 97 million in National Payments Corporation of India (NPCI), however, is yet to release app-wise UPI data for July. As of June, Google Pay and PhonePe continued to dominate the UPI ecosystem, together accounting for over 80% of the market. Emerging players such as Navi, Flipkart-backed and Cred are expanding their share by offering cashbacks and other incentives. Elevate your knowledge and leadership skills at a cost cheaper than your daily tea. Why are mid-cap stocks fizzling out? It's not just about Trump tariffs. 3 years on, Akasa's next challenge: Staying in the air against IndiGo's dominance Jane Street blow pushes Indian quants to ancient Greek idea to thrive Berlin to Bharuch: The Borosil journey after the China hit in Europe FIIs are exiting while retail investors stay put. Will a costly market make them pay? Stock Radar: TVS Motor breaks out from 1-month consolidation to hit fresh high; time to buy or book profits? FMCG sector: Both a consumption & tactical play; 7 stocks that have an upside potential of up to 30% F&O Radar| Deploy Short Strangle in Nifty for Theta decay benefits within index range These large- and mid-cap stocks may give more than 25% return in 1 year, according to analysts
Time of India
06-08-2025
- Business
- Time of India
Can UPI stay free forever? RBI Governor Sanjay Malhotra says someone has to pay the cost
Synopsis Reserve Bank of India Governor Sanjay Malhotra suggests Unified Payments Interface may not remain free. He highlights the costs associated with UPI transactions. Someone will eventually need to cover these expenses. The sustainability of the UPI model is crucial. It is important to determine who will bear the cost. This could be done collectively or individually.
Hans India
05-08-2025
- Business
- Hans India
UPI Hits Record 707 Million Daily Transactions, Marks a New Digital Milestone for India
In a landmark moment for India's digital economy, the Unified Payments Interface (UPI) surpassed 707 million transactions in a single day on August 2, 2025, according to data shared by the National Payments Corporation of India (NPCI). This sets a new all-time high and highlights the massive growth of digital transactions across the country. July had already seen UPI average around 650 million transactions daily. Experts say the surge in early August can be attributed to routine financial activity such as rent payments, utility bills, and salary disbursements, which typically peak at the beginning of each month. The achievement marks a doubling of UPI's usage since 2023, when it was averaging 350 million transactions a day. That figure rose to 500 million by August 2024 and now comfortably crosses 700 million, putting India on track to meet the Government's target of 1 billion daily UPI transactions by 2026. But what exactly is UPI, and why is it so widely used? Developed and maintained by NPCI, UPI (Unified Payments Interface) is a real-time mobile-based payment system that links multiple bank accounts into a single platform. It enables seamless peer-to-peer as well as merchant transactions, allowing users to transfer money using just a mobile number or a UPI ID — without needing to share sensitive banking details. Major apps like PhonePe, Google Pay, Paytm, BHIM, and even banking apps such as SBI Yono, ICICI iMobile, and HDFC PayZapp support UPI payments. What makes this milestone more significant is the growing contribution of merchant payments, which now make up approximately 62% of UPI transactions. This indicates that UPI has moved far beyond personal payments and is now a crucial tool for businesses of all sizes — from local vendors to large retailers. In fact, nearly 85% of all digital payments in India are now processed through UPI, reflecting its deep integration into the financial habits of Indians. The system's real-time settlement feature also gives it an edge over traditional card networks like Visa and Mastercard, which follow delayed settlement processes. However, the rapid rise of UPI does raise sustainability concerns. At present, there is no Merchant Discount Rate (MDR) applied to UPI payments, which means that banks and payment apps earn very little from facilitating these transactions. Industry players and fintech companies have been urging the government to reinstate MDR for large-value merchant payments, a move also supported by the Reserve Bank of India (RBI) to ensure the long-term viability of the ecosystem. As UPI continues to expand, its influence is gradually reducing the reliance on cash and debit cards, especially in urban areas. Although traditional banking remains essential for larger financial decisions like loans or investments, UPI is fast becoming the preferred choice for daily financial interactions. That said, the shift is less pronounced in rural areas, where cash usage remains strong among older populations. India's digital payment landscape is clearly undergoing a significant transformation — and UPI is leading the charge.
India Today
10-07-2025
- Business
- India Today
IMF praises UPI, says it makes India global leader in fast payment
India now makes faster payments than any other country with the quick growth of UPI, and the usage of other instruments, including debit and credit cards, is on the decline, according to an IMF Payments Interface is an instant and real-time payment system developed by NPCI to facilitate inter-bank transactions through mobile Fintech Note titled 'Growing Retail Digital Payments: The Value of Interoperability' said that since its launch in 2016, UPI has grown quickly, while some proxies for cash usage have begun to UPI now processes more than 18 billion transactions per month and dominates other electronic retail payments in India."India now makes faster payments than any other country. At the same time, proxies for cash usage have fallen," the note note presents evidence consistent with this framework using granular data covering the universe of transactions on India's UPI, an interoperable platform that has become the world's largest retail fast payment system by volume."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," the fintech note Notes offer practical advice from IMF staff members to policymakers on important said that interoperable payment systems, such as UPI, are alternatives to closed-loop systems that could also foster the adoption of digital payments. Such systems allow for seamless payments between users of different payment providers."Importantly, total digital payments also rise relative to a proxy for cash usage," it note further said that estimating cash usage is difficult because cash transactions can occur anonymously and may not be recorded in any ledger, especially in the informal sector."However, we can approximate cash usage with the value of automated teller machine (ATM) withdrawals in each district. When we measure the impact of integration on transaction values relative to cash withdrawals, we find a very similar picture," it note said that total digital payments relative to cash withdrawals rise substantially and persistently more after integration in districts that face greater increases in de facto evidence suggests that interoperability can indeed support the adoption of digital payments and encourage a transition away from cash, it fintech note has been prepared by Alexander Copestake, Divya Kirti, and Maria Soledad Martinez authors further said that as the interoperable platform matures and more providers join, policymakers should watch for the emergence of dominant private providers and be prepared to take action to maintain a fully open, interoperable and competitive system."Payment authorities should use a range of metrics to identify potential threats to this goal and tailor any responses to the specific underlying anti-competitive mechanism," they all stages of development, the system operator should consult with current and potential private sector participants to ensure that its design choices support the health of the interoperable ecosystem, the note said.- EndsTrending Reel
