The value of UPI transactions has increased exponentially from 2019-March 2020 to 2025, from 21.3 billion rupees in 2019-20 to 26,056 crore. Specifically, P2M transactions have reached Rs 59.3 lakh, reflecting growing merchant adoption and consumer confidence in digital payment methods.
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The government is considering the claim that the UPI transaction is subject to over Rs 2,000, which is completely false, misleading and has no basis for any.
Currently, the Ministry of Finance has clarified that the government has not had such a proposal before. Fees for GST (such as Merchant Discount Rate (MDR)) related to payments made using certain tools.
Starting in January 2020, the Central Direct Taxation Commission (CBDT) deleted the Merchant Discount Rate (MDR) for Person-to-People Transactions through a Gazette Notice of December 30, 2019. Since no MDR is currently charged for UPI transactions, it does not apply to these transactions and therefore does not apply to these transactions.
The Treasury Ministry said the government remains committed to facilitating digital payments through UPI. To support and sustain UPI growth, an incentive program has been run from 2021-22. The program is specifically targeted at low value UPI (P2M) transactions, benefiting small merchants by reducing transaction costs and promoting wider participation and innovative digital payments. Over the years, the total amount of incentive expenditure under the scheme reflects the government’s ongoing commitment to promoting UPI-based digital payments.
Over the years, the allocations under the plan were: FY21-22: Rs 138.9 crore; FY2022-23: Rs 22.1 crore; and FY2023-24: Rs 363.1 crore.
“These measures have greatly promoted India’s strong digital payment ecosystem,” the ministry said. According to the 2024 report of the ACI Global Report, India accounts for 49% of global real-time transactions in 2023, reaffirming its position as a global leader in digital payment innovation.
The value of UPI transactions has increased exponentially from 2019-March 2020 to 2025, from 21.3 billion rupees in 2019-20 to 26,056 crore. Specifically, P2M transactions have reached Rs 59.3 lakh, reflecting growing merchant adoption and consumer confidence in digital payment methods.
Apart from the title, the story has not been edited by DNA staff and published from ANI
