Union Bank of India and Syndicate Bank show highest decline in UPI transactions

The Union Bank of India (UBI) showed the highest technical decline (TD) rate of 12.89 per cent in UPI transactions among remitter banks. The Syndicate Bank topped in beneficiary banks (bank of the recipient in a transaction) with 8.65 per cent TD. The statistics of India's top 30 UPI transacting banks for January 2021 is based on the National Payments Corporation of India (NPCI) data.

TD happens in a transaction due to several reasons, including invalid pin entry by the customer, incorrect beneficiary account, exceeding transaction limit or the number of transactions per day.

In January, eighty per cent of UBI's transactions were approved out of 85.95 million transactions, while 7.36 per cent were declined. UBI's TD was 10.75 per cent during December 2020, the highest of that month. Andhra Bank and Indian Bank ended up at second and third with TD rates of 10.47per cent and 9.83 per cent, respectively. Paytm Payments Bank recorded the lowest TD rates among remitter banks, with 0.05 per cent through 145.61 million transactions.

Among the beneficiary banks, Indian Bank came second with 5.50 per cent TD, and Karnataka Bank followed with 3.18 per cent TD in January. While State Bank of India showed the highest TD among beneficiary banks with 9.08 per cent in December 2020, it kept it to 1.52 per cent in January 2021. The CITI bank showed zero transaction failing on 5.94 million transactions among beneficiary banks.

SBI topped with 664.75 million in terms of transaction volume, followed by the HDFC, Axis and ICICI banks in the remitter banks' list. In the beneficiary banks' list, Paytm Payment Bank topped with 368.90 million, followed by SBI, Yes, ICICI and Axis banks with the highest volume in UPI transactions.

The UPI app PhonePe, owned by Walmart, made the highest number of transactions of 968.72 million, involving Rs 1.92 crore in January. It overtook Google Pay with more than 100 million transactions that month while Paytm Payments Bank stood third.