UPI growth slowing even as government mulls MDR charges, cash usage picks up

An analysis reveals that the growth rate of UPI transactions has been consistently declining since 2021-22, even though it remains higher than the growth in cash with the public. The slowdown comes as the government considers imposing Merchant Discount Rate (MDR) charges on UPI payments.

The data indicates a shift in payment patterns, with cash usage accelerating in the economy. This trend emerges amid policy discussions on potential regulatory changes to UPI, India's dominant digital payment platform.