percent in volume (approx. 5.93 to
34.35 billion transactions) and value (approx. Rs.920.38 to Rs.1,623.05 trillion) respectively over the last five years (March ‘15-’20). The RBI’s persistent steps furthering digital payments have supported last year’s challenges and forced wide-spread digitization.
The key initiatives last year, and their impact in the new year, are looked at here.
1. The changing face of UPI- Zero MDR, new revenue streams and the 30% cap
Last year started with
zero MDR s implementation, changing UPI’s revenue potential and converting a previously incentive-based approach to a mandatory, no-profit approach. Even now,
industry meetings with the government for withdrawing the rule are ongoing. UPI transactions are nevertheless ever-increasing, recording 2.23 billion transactions of value