Mumbai, Oct. 1 -- Transactions on the Unified Payments Interface (UPI) platform dipped in September after the government announced the reintroduction of a merchant discount rate (MDR) on select transactions, with a sharper decline in the second half of the month pointing to some caution among customers and merchants ahead of the new charges.

The UPI platform processed 24.07 billion transactions in September, down 1.8% from August. The value of transactions fell 1.5% to Rs.29.4 lakh crore, according to data from the National Payments Corporation of India (NPCI), which operates the UPI platform.

More importantly, NPCI's daily transaction data shows a dip in both volumes and value in the second half of the month, after the 15 September ann...