UPI's 10-Year Journey: Transforming India's Digital Payments Landscape The Unified Payments Interface (UPI) service, launched in 2016, has reached a significant milestone as it completes a decade of operation. This digital payment system has revolutionized the way transactions are conducted across India, from small local businesses to large restaurants and retail outlets. Today, UPI has become the preferred method for cashless transactions, enabling users to make payments instantly using their smartphones. Prime Minister Narendra Modi has publicly praised the service, highlighting its role in advancing India's digital payment ecosystem. The UPI initiative was officially launched on August 25, 2016, under the guidance of the National Payments Corporation of India (NPCI) and with regulatory oversight from the Reserve Bank of India (RBI). Since its inception, the platform has gained widespread popularity as a convenient and secure alternative to traditional cash-based transactions. Modi emphasized in a social media post that UPI marked a significant shift in India's digital payment journey, transforming the way people conduct everyday financial activities. Over the past decade, UPI has experienced exponential growth. According to recent data, the number of transactions processed through UPI surged from 1.78 crore in the 2016-17 fiscal year to over 24,162 crore in the 2025-26 fiscal year—a growth of approximately 12 times. The total value of transactions also saw a dramatic increase, rising from 0.07 lakh crore rupees in 2016-17 to 314 lakh crore rupees in 2025-26. This growth underscores UPI's role as a cornerstone of India's digital economy, facilitating seamless financial interactions for millions of users.#narendra_modi #reserve_bank_of_india #digital_payments #unified_payments_interface #national_payments_corporation_of_india
President Droupadi Murmu Approves UPI Fee Regulations and Tax Law Amendments The President of India, Droupadi Murmu, has given her assent to two significant bills aimed at regulating fees on Unified Payments Interface (UPI) transactions and amending tax laws to boost economic growth. The bills, which were passed by Parliament on August 10, 2026, provide the government with the legal framework to impose charges on UPI and RuPay card transactions while ensuring user-friendly policies for digital payments. The first bill, titled the "Amendment to the Income Tax and Other Laws Act, 2026," and the second, the "Amendment to the Payment and Settlement Systems Act, 2007," were approved by the President after being cleared by the legislature. The Payment and Settlement Systems Act amendment grants the government the authority to levy fees on electronic transactions conducted through UPI and RuPay debit cards. This includes the power to specify which payment methods or transactions will be exempt from the "merchant discount rate" (MDR) charges. Currently, banks and payment system providers are prohibited from charging users for transactions made via UPI or RuPay debit cards. However, the amendment allows the National Payments Corporation of India (NPCI), which oversees UPI operations, to decide on MDR charges. The NPCI will now be responsible for determining which categories of business transactions will be subject to these fees, ensuring a balance between user convenience and financial sustainability for service providers. Finance Minister Nirmala Sitharaman highlighted during parliamentary discussions that UPI transactions will remain free for users, but future MDR charges will apply only to specific business categories.#president_droupadi_murmu #unified_payments_interface #finance_minister_nirmala_sitharaman #national_payments_corporation_of_india #parliament
Congress Accuses India of Aligning with U.S. Over UPI Transaction Fees The Indian government's decision to impose fees on Unified Payments Interface (UPI) transactions has drawn criticism from the Congress party, which alleges that the move is influenced by U.S. pressure. Congress leader Jayaram Ramesh accused the government of aligning with American interests, citing concerns over the financial implications for ordinary citizens. He argued that the proposed changes to the Finance Act and other legislation would shift the burden of transaction fees onto the public, undermining the benefits of the UPI system. Ramesh highlighted that the proposed amendments to the Finance Act 2025 and the Reserve Bank of India Act would enable banks and service providers to charge fees for digital transactions. He warned that this would disproportionately affect common citizens, as they would now face costs for using UPI, which had previously been free. The Congress leader also criticized Prime Minister Narendra Modi's government for framing the move as a necessary step to sustain the UPI model, arguing that the Reserve Bank of India already provides sufficient funding to maintain the digital payment system. The government's rationale for the fee structure is rooted in the need to address financial sustainability. In the fiscal year 2025-26, the Reserve Bank of India transferred Rs 2.86 lakh crore in surplus funds to the government. Ramesh pointed out that only a small portion of this amount would be sufficient to support the digital payment infrastructure, suggesting that the fee policy is a response to external pressures. He further noted that U.S.#reserve_bank_of_india #prime_minister_narendra_moddi #congress_party #unified_payments_interface #jayaram_ramesh
UPI was key to quick commerce boom. What the proposed tax means for industry The rapid growth of quick commerce in India has been closely tied to the widespread adoption of the Unified Payments Interface (UPI), which has enabled seamless, instant transactions. However, the sector now faces potential regulatory changes as the government proposes a new framework that could reintroduce merchant discount rates (MDR) on UPI transactions. This development has sparked discussions among industry players about its implications for businesses, consumers, and the broader digital economy. Quick commerce platforms, which promise ultra-fast delivery of goods—often within minutes—have become a dominant force in the retail landscape. Companies like Zepto, Blinkit, Instamart, and Flipkart’s food delivery arm have leveraged UPI’s efficiency to scale operations, offering convenience to millions of users. Zepto, founded in 2021 as a pivot from a pandemic-era venture, has been a standout example of the sector’s potential. Its business model, built around a streamlined logistics network, has attracted significant investment and attention, though its recent delayed IPO highlights ongoing challenges with profitability and valuation. Other major players in the space include Blinkit, a quick commerce unit of Zomato, and Instamart, Swiggy’s entry into the sector. These platforms have reported rising user engagement and transaction frequency, underscoring the growing demand for speed in retail. However, the sector’s expansion has not been without controversy. Gig workers in the industry have previously protested against the intense work conditions and safety risks associated with meeting short delivery deadlines.#flipkart #unified_payments_interface #blinkit #zepto #instamart
RBI Governor's Remarks on UPI Charges and Polymer Currency Notes The Reserve Bank of India (RBI) Governor, Sanjay Mishra, addressed the issue of charges associated with Unified Payments Interface (UPI) transactions during a press conference following the release of the monetary policy review. He emphasized the importance of balancing the costs of digital payment systems with the need to maintain efficiency in the financial ecosystem. Mishra noted that while the government is considering introducing merchant discount rates (MDRs) for UPI transactions, the exact details of these charges remain under discussion. The central bank's governor highlighted that the proposed changes aim to ensure that the costs of processing digital payments are fairly distributed among stakeholders. He explained that the current system allows banks and payment service providers to bear these charges, but the government is exploring ways to shift some of this burden to merchants. Mishra stated that the decision to implement MDRs on UPI transactions will depend on the government's final stance, as the RBI believes it is crucial to wait for clarity before taking any definitive action. In addition to the UPI charge discussions, the RBI announced its plan to introduce polymer currency notes in the upcoming financial year. These notes, which are more durable than traditional paper currency, are expected to be issued starting from the beginning of the next fiscal year. Mishra explained that polymer notes can withstand wear and tear for up to 30 years, making them particularly suitable for high-circulation denominations. He also mentioned that the transition to polymer notes is part of the RBI's broader strategy to enhance the longevity and security of India's currency.#reserve_bank_of_india #sanjay_mishra #unified_payments_interface #merchant_discount_rates #polymer_currency_notes
Tamil Nadu Introduces Online Liquor Booking App to Combat Overcharging The Tamil Nadu State Marketing Corporation Limited (Tasmac) is set to launch a mobile application on Thursday to address the issue of overcharging in liquor sales. The initiative, which will be available across all 4,038 retail liquor outlets in the state, allows customers to check prices, place orders, and make payments online before visiting physical stores. This system aims to eliminate price manipulation by ensuring transparency and reducing the need for in-person transactions. The app will enable users to locate their nearest Tasmac outlet, view available liquor brands, and confirm exact pricing before completing a purchase. Once an order is placed, customers will receive a QR code, which can be presented at the retail outlet for collection. A senior Tasmac official stated that the app will help consumers avoid long queues at outlets. “Once an order is placed, the customer will receive a QR code, which can be shown at the retail outlet to collect the liquor. Since the price will be displayed in the app and payment made online, there will be no need to pay any amount above the MRP,” the official said. The launch comes days after Tasmac tightened disciplinary action against staff found guilty of overcharging. A July 24 circular from managing director K Nandakumar warned employees of possible suspension, transfer, or dismissal for repeated violations. Officials expect the app’s fixed pricing and digital payment system to reduce complaints of overcharging. In preparation for the launch, Nandakumar held a review meeting with district, regional, and general managers.#tamil_nadu #unified_payments_interface #tasmac #k_nandakumar #tasmac_online_shopping
PM Modi Shares Story of 30-Year-Old Gift in New Zealand Prime Minister Narendra Modi recounted a nostalgic tale during his visit to New Zealand, recalling a gift he received over 25-30 years ago. He shared that when he first arrived in the country, before entering public life, he was given three items—a scarf, a cap, and gloves—as a gesture of warmth during the cold weather. Modi, who brought these items back to India, revealed that he still keeps the scarf, which he described as a cherished possession, comparing its preservation to how one might safeguard a beloved relationship. Speaking at a cultural event in Auckland titled "Kya Ora Modi" for the Indian diaspora, Modi emphasized the enduring ties between India and New Zealand. He highlighted the foundation of their relationship on shared memories, lasting friendship, and mutual values. The event also featured New Zealand Prime Minister Christopher Luxon, who attended alongside Modi. Modi underscored India's remarkable economic growth, stating that the country is now the world's fastest-growing major economy. He positioned India as offering a new model for development, citing advancements like the Unified Payments Interface (UPI), which facilitates billions of digital transactions monthly. Additionally, he praised India's progress in emerging technologies such as drones and space exploration, noting its potential to reshape global industries. The visit included a tour of a state-of-the-art sports exhibition showcasing cutting-edge equipment developed in collaboration with New Zealand athletes. Modi highlighted how sports have historically served as a bridge between the two nations, celebrating the 100th anniversary of their sports relationship.#new_zealand #narendra_modi #unified_payments_interface #christopher_luxon #kya_ora_modi
SBI flags Rs 6,300cr banking frauds in 3 years; UPI biggest con gateway State Bank of India (SBI) has disclosed that over the past three years, from April 2023 to March 2026, more than 30,700 cases of fraud involving its customers resulted in the siphoning off of Rs 6,313.4 crore. The data, obtained under the Right to Information (RTI) Act, highlights a significant challenge for the bank as it strengthens its fraud detection systems. West Bengal emerged as the state with the highest number of fraud cases during this period, with 3,426 incidents totaling Rs 143.67 crore. While the total number of fraud cases declined from 14,717 in 2023-24 to 2,247 in 2025-26, the average amount involved per fraud rose sharply, indicating a shift toward fewer but higher-value incidents. The RTI response, provided to Nagpur-based activist Abhay Kolarkar, revealed that digital payment platforms, particularly the Unified Payments Interface (UPI), were the primary channels for fraud. UPI accounted for 12,868 fraud cases, followed by internet banking with 8,657 incidents. Together, these two channels accounted for over 21,500 fraud cases in the three-year period. Cyber frauds constituted a major portion of the total, with 23,580 cases involving Rs 166.73 crore between 2023 and 2026. Although cyber fraud figures have declined in recent years, experts warn that increasingly sophisticated techniques continue to pose risks to customers. The data also exposed vulnerabilities within the banking system, as frauds involving SBI employees totaled 303 cases, causing losses of Rs 311.08 crore over the three-year period. Employee-linked frauds decreased from 114 cases in 2023-24 to 89 in 2025-26, but the average loss per incident rose to over Rs 103 crore in the last fiscal year.#west_bengal #right_to_information_act #state_bank_of_india #unified_payments_interface #abhay_kolarkar
Bank Holidays in India: RBI Schedule and Additional Observances for Eid-ul-Adha and SBI Strike Banks across India will remain closed on Saturday, May 23, as part of the Reserve Bank of India’s (RBI) standard schedule, which designates the second and fourth Saturdays of each month as non-business days. This closure aligns with the broader calendar of bank holidays for the month, which also includes all Sundays from May 3 to May 31. Additional days off are scheduled for May 9, the second Saturday, and May 24, the fourth Saturday, further shaping the timeline for financial services. The month’s holiday calendar also incorporates religious and regional observances. Eid-ul-Adha, also known as Bakrid, will be celebrated on May 27, with some states granting an extra day off to mark the occasion. However, Jammu and Kashmir will observe the holiday on May 28, reflecting local variations in the calendar. These additional days off may impact customer access to banking services, particularly for those planning to conduct transactions during the festive period. A planned strike by State Bank of India (SBI) staff is expected to cause disruptions on May 25 and 26. The strike, which is tied to ongoing discussions over recruitment policies and job-related concerns, may affect operations at SBI branches. While the exact scope of the strike’s impact remains unspecified, customers are advised to plan ahead and consider alternative methods for managing their financial needs. Despite the closures and potential disruptions, digital banking services, including Unified Payments Interface (UPI) transactions and ATM access, will remain operational. Customers are encouraged to verify the holiday schedule and adjust their plans accordingly to avoid inconvenience.#jammu_and_kashmir #reserve_bank_of_india #state_bank_of_india #unified_payments_interface #eid_ul_adha
From scale to depth: Dismantling frictions within India’s financial inclusion juggernaut India’s financial inclusion journey has transitioned from expanding access to addressing deeper structural challenges that hinder the effective use of financial services. While the country has achieved significant progress in bank account penetration, the focus must now shift toward improving service quality, enhancing resilience, and dismantling systemic barriers that prevent marginalized groups from fully leveraging financial tools. This analysis explores the current state of financial inclusion in India, highlighting the gaps in service delivery and the need for policy reforms to drive inclusive growth. The 2024 World Bank Findex report reveals that 89% of Indian adults hold bank accounts, surpassing the 75% average for low- and middle-income countries and approaching levels seen in high-income economies. Average account balances have grown from $12 in 2015 to $50 in 2024, reflecting a 17% compound annual growth rate. This expansion has been driven by digital public infrastructure (DPI), particularly the Jan Dhan-Aadhaar-Mobile (JAM) framework and the Unified Payments Interface (UPI). UPI has revolutionized retail payments, reaching 260 million users and laying the groundwork for broader financial services. However, the shift from access to meaningful financial engagement remains incomplete. In 2023, 14% of adults—16% of account holders—remained inactive, more than double the global average. This suggests that for many, bank accounts function primarily as passive repositories for funds rather than active tools for managing finances. The design of the Direct Benefit Transfer (DBT) system exacerbates this issue.#india #world_bank #direct_benefit_transfer #unified_payments_interface #jan_dhan_aadhaar_mobile
Time For India To Become Global Innovation Leader, Says Trivedi Rajya Sabha member Sudhanshu Trivedi addressed students at VNIT's AXIS festival, emphasizing India's need to transition from adopting technology to leading global innovation. He highlighted the country's digital payment system, stating it has surpassed the combined transaction volumes of the United States and China. Trivedi noted that India now accounts for 49% of global digital transactions, a figure that exceeds the combined totals of the U.S. and China. He cited the Unified Payments Interface (UPI) as a key achievement, explaining that it overtook Visa to become the world’s largest digital payment system in 2024. Trivedi pointed to international examples of India’s growing influence, such as Japan’s Prime Minister making a digital payment in a Delhi market and French President Emmanuel Macron using UPI at a roadside tea stall in Jaipur. He remarked that nations once considered advanced in technology are now surprised by India’s rapid digital transformation. The MP also attributed this progress to a significant decline in data costs, noting that 1 GB of data cost over Rs300 per month a decade ago, compared to Rs28 per month today. Trivedi emphasized the role of India’s national portal in expanding access to global research, stating that over 6,300 institutions now have access to international journals. In 2025 alone, more than 11 crore papers were downloaded through this platform. Looking ahead, he outlined government initiatives, including a Rs30,000 crore allocation for artificial intelligence and Rs6,000 crore for quantum technologies. National missions in green hydrogen and renewable energy were also highlighted as critical areas for future investment.#rajya_sabha #unified_payments_interface #sudhanshu_trivedi #vnit #axis_festival
EPFO 3.0 Launches in Mid-2026, Simplifying PF Withdrawals The Employees' Provident Fund Organization (EPFO) is set to roll out its third major overhaul, EPFO 3.0, by mid-2026. This update aims to streamline the process of withdrawing Provident Fund (PF) balances for salaried employees, allowing them to access up to half of their accumulated savings through ATMs or Unified Payments Interface (UPI) platforms. The change eliminates the need for traditional paperwork and in-person visits to EPFO branches, significantly reducing the time and effort required to access funds. A key feature of EPFO 3.0 is the introduction of a direct withdrawal mechanism. Under the new system, members can withdraw up to 50% of their PF balance instantly via UPI or ATMs. This shift from manual processing to digital transactions is expected to enhance convenience, particularly for those in urgent financial need. The initiative aligns with the government’s broader push to digitize public services, ensuring faster and more transparent access to financial resources. The update also includes an auto-settlement feature that accelerates claim processing. Previously, members had to submit physical forms and wait for manual verification, which often delayed the release of funds. With EPFO 3.0, the system will automatically approve claims for amounts up to ₹5 lakh, provided the member’s details are verified. This includes an active Universal Account Number (UAN), a verified mobile number, and completed Know Your Customer (KYC) documentation such as Aadhaar, PAN, and bank account details. The implementation of EPFO 3.0 relies on partnerships with 32 banks, which will facilitate seamless fund transfers. These collaborations are designed to reduce processing times and minimize errors, ensuring that members receive their money promptly.#unified_payments_interface #epfo #universal_account_number #know_your_customer
India Markets Regulator Proposes Gift Cards for Mutual Fund Investments India's securities regulator, the Securities and Exchange Board of India (SEBI), has proposed allowing gift cards or prepaid payment instruments (PPIs) for mutual fund investments as part of efforts to enhance financial inclusion and attract new investors. The proposal, outlined in a consultation paper published on its website, aims to simplify the investment process by enabling individuals to use gift cards or PPIs to purchase mutual fund units. Under the proposed framework, PPIs would be funded exclusively through electronic bank transfers or Unified Payments Interface (UPI) transactions from an Indian bank account. Each PPI would have a validity period of one year from the date of issuance, ensuring that the funds are used within a specified timeframe. The regulator emphasized that this measure is designed to make mutual fund investments more accessible, particularly for first-time investors who may prefer alternative methods of funding their investments. To ensure compliance with investment limits, registrars and transfer agents, acting on behalf of asset management companies, would track annual investments made through gift PPIs, e-wallets, and cash. Any transaction linked to a gift PPI that would cause an individual's total annual investment to exceed 50,000 rupees (approximately $535.38) would be rejected. This cap is intended to prevent excessive concentration of investments in a single instrument while promoting broader participation in the mutual fund market. The proposal also includes a note on the exchange rate, stating that $1 is equivalent to 93.3910 Indian rupees.#india #securities_and_exchange_board_of_india #mutual_fund #prepaid_payment_instruments #unified_payments_interface
