Latest news with #ValueofInteroperability
India.com
a day ago
- Business
- India.com
Will UPI transactions soon carry a charge too? Here's what RBI Governor says, ‘Important for us…., know what it means for Paytm, Google Pay, PhonePe users
New UPI rules from August 1: Cap on checking bank balance on UPI, Auto payments during fixed hours | Full list of key changes Will UPI remain free? Reserve Bank of India(RBI) Governor Sanjay Malhotra stated that it cannot. UPI has made digital payments easy and mostly free for people, but running such a big system costs a lot of money. Earlier on Wednesday, RBI Governor Sanjay Malhotra stated that UPI might not be free forever. Eventually, someone is going to have to cover the cost of employing the digital payments system. While speaking at the post-Monetary Policy Committee (MPC) press conference, Malhotra stated, 'I never said that UPI can stay free forever. What I said was there are costs (associated with UPI transactions), and they need to be paid for by someone,' reported Economics Times. 'Who pays is important but not so important than someone footing the bill. So, it is important for us for the sustainability of the model, that whether collectively or individually someone pays,' said Malhotra. His comments have led to worries that the free UPI services people are using today won't be free for long. There is now speculation that either banks or the government could charge a fee for UPI transactions to help fund the costs of the service. India has emerged as the global leader in fast payments, according to a recent note by the International Monetary Fund titled Growing Retail Digital Payments: The Value of Interoperability. At the heart of this transformation is the Unified Payments Interface, better known as UPI. UPI is responsible for close to 85% of all digital transactions in India. The UPI handles over 60% of digital transactions worldwide. In June 2025, UPI logged 18.39 billion transactions at the value of Rs 24 lakh crores, which is a 32% increase from last year. Launched in 2016 by the National Payments Corporation of India, UPI has changed how people send and receive money in the country. It brings all your bank accounts together in one mobile app. One can transfer money instantly, pay merchants, or send funds to friends with just a few taps. Its appeal lies in its speed and ease of use. In June alone, it handled over Rs 24.03 lakh crore in payments. This was spread across 18.39 billion transactions. Compared to the same month last year, when there were 13.88 billion transactions, the growth is clear. There is an increase of about 32 per cent in just one year. The UPI system now serves 491 million individuals and 65 million merchants. It connects 675 banks on a single platform, allowing people to make payments easily without worrying about which bank they use. Today, UPI accounts for 85 per cent of all digital transactions in India. Its impact goes beyond national borders, powering nearly 50 per cent of global real-time digital payments.' As stated in a report by ET Wealth Online, ICICI Bank has reportedly become the first bank to formally establish processing fees regarding the Payment Aggregators (PAs) which deal with UPI payment transactions. Starting August 1, 2025, all UPI transactions will incur a charge.
Indian Express
31-07-2025
- Business
- Indian Express
New UPI rules from August 1: All you need to know
UPI Transaction in India: According to a recent note by the International Monetary Fund (IMF) titled 'Growing Retail Digital Payments: The Value of Interoperability,' India has emerged as the global leader in fast payments, largely driven by the success of the Unified Payments Interface (UPI). Launched in 2016 by the National Payments Corporation of India (NPCI), the UPI has changed how people send and receive money in the country. Beginning August 1, 2025, a new set of UPI rules will come into effect. These new rules will further enhance system performance and reduce fraud risks across the country. In a circular issued on May 21, 2025, NPCI said: 'PSP banks and/or acquiring banks shall ensure all the API requests (in terms of velocity and TPS – transactions per second limitations) sent to UPI is monitored and moderated in terms of appropriate usage (customer-initiated and PSP system-initiated).' With the objective of improving the performance of UPI, following changes will be implemented starting August 1: Customers will be allowed to check their account balance through UPI apps up to a maximum of 50 times per app per day. This means each UPI app can be used up to 50 times in 24 hours for balance check. This allows an user to request for the status of the transaction. Under the new rules, the user may initiate the transaction status after 45 to 60 seconds of the initiation/authentication of original transaction. The users can execute UPI Autopay mandates such as electricity bills, water bills, OTT subscriptions, etc., only during non-peak hours. 'Peak hours are defined as the period during the day when UPI financial transactions reach the highest transactions per second, observed from 10:00 hours to 13:00 hours and from 17:00 hours to 21:30 hours. Any other time shall be referred as non-peak hour. During peak hours, UPI members are required to restrict non-customer-initiated APIs,' the NPCI said. It allows users to find the link of accounts linked to their mobile by a particular account provider. Now, the customers can view their bank accounts only 25 times per app in 24 hours.
NDTV
25-07-2025
- Business
- NDTV
How India's UPI Is Revolutionising Global Digital Payments, Explained Simply
India's Unified Payments Interface (UPI) is transforming the way the world views digital payments. In a recent report titled "Growing Retail Digital Payments: The Value of Interoperability," the International Monetary Fund (IMF) declared India the global leader in fast payments, a title largely credited to the success of UPI. From Local Innovation to Global Impact Launched in 2016 by the National Payments Corporation of India (NPCI), UPI enables users to transfer money instantly, 24x7, using any mobile app linked to their bank accounts. With its ease of use, zero transaction fees, and real-time processing, UPI now handles over 18 billion monthly transactions, worth more than Rs 24 lakh crore. It connects 675 banks, serving 491 million individuals and 65 million merchants. In June 2025 alone, UPI recorded a 32% year-on-year transaction growth, further cementing its role in India's shift from a cash-based to a digital-first economy. Leading the World in Real-Time Payments UPI has now overtaken Visa in daily global transactions, handling 640 million payments per day. According to IMF report, it powers nearly 50% of all real-time digital payments worldwide, highlighting the strength of India's open and interoperable payment infrastructure. UPI is already operational in seven countries, including France, Singapore, and the UAE. Its expansion to Europe via France marks a significant step in global adoption. Built on a Strong Digital Foundation UPI's success is underpinned by decades of groundwork-banking inclusion via Jan Dhan Yojana, digital identity through Aadhaar, and widespread internet access supported by low-cost data and 5G rollout. India's UPI model is now setting the standard for real-time digital payments globally, blending technology, accessibility, and trust to revolutionise the way the world moves money. Key Takeaways
Time of India
10-07-2025
- Business
- Time of India
UPI: India tops global digital payment speed charts; IMF highlights fall in cash and card use
India is ahead of all other nations in making faster payments, driven by the rapid growth of the Unified Payments Interface (UPI), while the use of debit and credit cards is declining, according to an IMF Fintech Note. UPI, an instant real-time payment system developed by the National Payments Corporation of India (NPCI), enables inter-bank transactions via mobile phones and has become the world's largest retail fast payment system by volume. The IMF's Fintech Note, titled Growing Retail Digital Payments: The Value of Interoperability, noted a sharp rise in UPI usage since its launch in 2016, accompanied by a fall in cash usage indicators. "India now makes faster payments than any other country. At the same time, proxies for cash usage have fallen," the note said. UPI now processes over 18 billion transactions each month and dominates the landscape of electronic retail payments in India. "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 note reiterated. The IMF pointed to UPI's open and interoperable nature as a key factor in its success, contrasting it with closed-loop payment systems. Interoperability, the note said, allows users of different providers to transact seamlessly, encouraging broader adoption of digital payments. "Importantly, total digital payments also rise relative to a proxy for cash usage," it added, quoted by PTI. Acknowledging the challenges in tracking cash usage, the note said, "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 said. The IMF found that digital payments saw a significant and lasting rise in districts where interoperability increased the most. This, it said, is clear evidence that interoperability helps promote digital payments and shift usage away from cash. The Fintech Note, authored by Alexander Copestake, Divya Kirti, and Maria Soledad Martinez Peria, also advised policymakers to remain alert as the UPI ecosystem expands. "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," the authors said. "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 said. The note also advised that at every stage of development, the system operator should engage with both current and potential private sector players to ensure that design decisions support a healthy interoperable environment. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
The Hindu
25-06-2025
- Business
- The Hindu
Cheap data, banking access & digital ID helped UPI transform India's payments landscape: IMF
A new paper published by the International Monetary Fund has lauded the impact of the Unified Payments Interface (UPI) system in India and has said those looking to move from cash to digital payments should also carry out the other mobile data, banking, and digital identity related steps that India did. According to a paper titled 'Growing Retail Digital Payments: The Value of Interoperability', authored by Alexander Copestake, Divya Kirti, and Maria Soledad Martinez Peria of the IMF and published on June 25, previous research has attributed the success of UPI in India to demographic factors and the 'Demonetisation shock'. However, the authors argue that the interoperability offered by UPI, which means that any company can ride on the platform, has also played a significant role in its widespread adoption. 'UPI has transformed the digital payments landscape in India,' the paper said. 'Evidence from the platform suggests that interoperability can improve users' experience of digital payments and expand overall adoption.' The authors added that interoperability directly increases the users' freedom to choose their favourite apps, thereby allowing them to take full advantage of the variety and quality of apps available, and not just be restricted to a single app. However, apart from setting up the basic infrastructure for an interoperable system like the UPI, countries that want to move their populations from cash to digital payments have to also take other steps that India did, the paper said. 'Providing infrastructure for interoperable systems, or otherwise supporting interoperability through regulation, could be a promising avenue for countries seeking to transition from cash to digital payments,' the paper said. 'For such policies to be effective, policymakers should first ensure that complementary enabling investments are in place—as with the reduction in mobile data costs and the expansion of bank accounts and digital identity in India,' it added.
