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The UPI (Unified Payments Interface) network processed 657 crore transactions in August worth about Rs 10.73 lakh crore, according to data from NPCI (National Payments Corporation of India).
The volume of transactions was up 4.5 per cent month-on month from 629 crore in July, whereas the value of transactions was higher by 0.95 per cent from Rs 10.63 lakh crore in July.
The UPI network crossed the milestone of 600 crore transactions in a month for the first time in June 2022.
On the other hand, AePS (Aadhaar-enabled Payment System) transactions witnessed a dip during the month, NPCI data showed.
Transactions via the AePS network were at 10.6 crore in August, declining from 11.0 crore in July and 12.1 crore in June. The value of AePS transactions also fell 16.1 per cent over this period to Rs 27,186 crore in August.
Growth in UPI transactions
The number of UPI transactions rose 84.6 per cent year-on-year in August, and the value of transactions was up by 67.9 per cent from the corresponding month of the previous financial year.
So far this financial year, the UPI network has facilitated 4,481 crore transactions worth Rs 77.9 lakh crore. Transactions for the calendar year 2002 stood at 3,026 crore totalling about Rs 51.7 lakh crore.
In comparison, FY22 saw a total of 4,597 crore UPI transactions worth Rs 84.2 lakh crore.
Also read: BL Explainer: Should we pay for the digital transactions?
UPI a ‘digital public good’
The meteoric rise in payments via the UPI network is happening even as the RBI recently floated a discussion paper seeking industry feedback on whether such transactions should be charged to support the network and the issuers of payments instruments.
Following that, however, the Finance Ministry clarified that the UPI network has been incorporated for convenience and productivity and is a ‘digital public good, adding that it has no plans to levy any charges on UPI transactions.
While most modes of digital retail payments attract a charge, the government has mandated a ‘zero-charge framework’ for UPI effective January 2020.
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