UPI transactions declined 1.8% in September compared with August, according to data released by the Reserve Bank of India.
The Unified Payments Interface recorded 2,407 crore transactions during September. The platform had processed 2,450 crore transactions in August.
The monthly decline also extended to the total value of transactions. UPI transactions worth Rs 29.37 lakh crore were processed in September. The value had stood at Rs 29.82 lakh crore in August.
That represented a decline of 1.50% in transaction value during the month.
However, the monthly figures need to be viewed alongside the number of days in each month. August had 31 days, while September had 30 days.
Industry watchers noted that the average number of UPI transactions per day actually increased in September.
The platform processed an average of around 802 million transactions each day during September. The corresponding daily average stood at around 791 million in August.
The higher daily average indicates that the month-on-month decline in total volume does not necessarily signal a reduction in the use of digital payments.
The shorter calendar month contributed to the lower overall transaction count. The daily figures instead point to continued high usage of the UPI platform.
UPI operates through the National Payments Corporation of India. The platform has become a major channel for digital payments across India.
The September data comes at an important time for the payments ecosystem. The government is set to introduce a new merchant discount rate framework for eligible high-value UPI payments from October 15.
Under the new framework, eligible UPI payments above Rs 2,000 made to merchants will attract a merchant discount rate. Consumers will continue to use UPI without a transaction charge.
The timing makes the September numbers relevant for businesses and payment industry participants. The data provides a picture of UPI usage immediately before the new MDR framework takes effect.
The transaction value also remains significant despite the monthly decline. UPI processed Rs 29.37 lakh crore during September across 2,407 crore transactions.
The figures highlight the scale of India’s digital payments ecosystem. They also show the extent to which consumers and businesses depend on electronic payment channels for everyday transactions.
Other payment systems also recorded substantial activity during the month.
The Immediate Payment Service platform processed 35.40 crore transactions in September. The transactions involved a total value of Rs 7.05 lakh crore, according to the RBI data.
The Real Time Gross Settlement platform recorded 3.25 crore transactions during September. Their combined value reached Rs 235.71 lakh crore.
The National Electronic Funds Transfer system processed 86.2 crore transactions during the month. The value of these transactions stood at Rs 46.75 lakh crore.
The different payment systems serve different transaction requirements. UPI handles a large number of everyday digital payments, while RTGS caters to high-value transactions.
NEFT and IMPS also remain important channels for electronic fund transfers.
The September figures therefore show continued activity across India’s wider digital payments network.
For UPI, the headline monthly decline needs to be read carefully. A comparison based only on total monthly transactions can overlook the effect of the number of days in each month.
The increase in daily transactions provides a different perspective on the September performance.
The next few months could provide a clearer indication of how merchants and consumers respond to the new MDR framework. The impact will depend partly on merchant behaviour and transaction patterns.
For now, UPI transactions remain at a very high level despite the monthly decline. The September data also suggests that daily usage remained strong.
The combination of high transaction volumes and rising daily usage keeps UPI at the centre of India’s rapidly expanding digital payments ecosystem.
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