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UPI Transactions Dip Ahead of New MDR Fee Implementation: RBI Data Reveals Decline
- •UPI transactions decreased by 1.8% in September compared to August, totaling 2,407 crore transactions.
- •The overall value of UPI transactions also fell by 1.50% to Rs 29.37 lakh crore in September.
- •Industry experts attribute the decline to fewer days in September, noting higher average daily transactions.
- •A new 0.4% Merchant Discount Rate (MDR) on UPI transactions above Rs 2,000 for merchants takes effect from October 15.
- •The All India Mobile Retailers Association (AIMRA) protested the MDR with a 'No UPI Day' on October 2, citing burden on small retailers.
Key Questions Answered
Starting October 15, the government is introducing a 0.4 per cent merchant discount rate (MDR) on merchant transfers exceeding Rs 2,000, while everyday person-to-person transfers and small payments remain entirely free. The fee is capped at Rs 300 for transactions of Rs 75,000 and above.
According to Reserve Bank data, UPI transactions dipped by 1.8 per cent in September to 2,407 crore transactions compared to 2,450 crore in August, while the overall value fell by 1.50 per cent to Rs 29.37 lakh crore.
The All India Mobile Retailers Association (AIMRA) called for a nationwide 'No UPI Day' protest on October 2 by covering QR codes with black cloth to oppose the proposed 0.4 per cent MDR charge on UPI transactions above Rs 2,000, which they claim places an unsustainable burden on small retailers.
