As per the latest tweet by NPCI, payment transactions through UPI or Unified Payments Interface have logged a fall in the May month both in volume as well as value. This is the second consecutive fall in transactions via this mode, wherein a total of 2.53 billion or 253 crore transactions worth Rs. 4,90,638 crore were carried out.
In April and March, 2.64 billion and 2.73 billion transactions valued at Rs. 4,93,663 crore and Rs. 5,04,886 crore, respectively were performed.
The UPI figures for May month are noteworthy as despite the localized lockdowns in most parts of the country, the fall in transactions via the online mode is not that severe in contrast to 2020. In April 2020, UPI volume went down by almost 20 percent.
In November 2020, the NPCI has capped the transaction volume through UPI on third party apps at 30 percent. The decision was largely taken to protect the payment mode as it is growing in scale. Nonetheless, for the adherence to the new rule, the payments body shall allow exemption to the leading UPI apps.
Also, the payments entity is foraying into international markets and of late entered into association with Financial Software and Systems and incorporated- NPCI International Payments Limited (NIPL).