Did UPI Achieve Its Highest Single-Day Payments?
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Synopsis
On October 18, the UPI platform shattered records by processing Rs 1.02 lakh crore in payments, driven by a surge in consumer demand following GST rate cuts. This remarkable achievement highlights the positive impact of tax reforms on festive spending and the revival of the retail sector.
Key Takeaways
- UPI transactions reached Rs 1.02 lakh crore on October 18, setting a record.
- GST rate cuts led to increased consumer demand.
- Diwali sales hit an all-time high of Rs 6.05 lakh crore.
- Brick-and-mortar retail showed strong recovery, accounting for 85 percent of total sales.
- Approximately 72 percent of traders reported higher sales due to reduced GST.
New Delhi, Oct 23 (NationPress) Finance Minister Nirmala Sitharaman announced on Thursday that the unified payments interface (UPI) platform achieved a remarkable milestone by processing 754 million transactions amounting to Rs 1.02 lakh crore on October 18, setting a record for the highest single-day transactions, driven by increased consumer demand following GST rate reductions.
During the three-day span from Dhanteras to Diwali, the average UPI transactions reached 736.9 million, surpassing the 647.46 million recorded during the same period the previous month, according to the Finance Minister.
“This year’s Diwali has been exceptional for retailers as GST rate cuts have led to a surge in consumption, allowing the middle class to purchase more items this festive season,” she stated.
From lab-grown diamonds to everyday clothing and home decor, both the mass and premium market segments saw significant growth, remarked Sitharaman.
She emphasized that the implementation of Goods and Services Tax (GST) 2.0 has revitalized India’s economic landscape by boosting household purchasing power, streamlining business operations, and simplifying tax processes.
“By adjusting tax slabs and reducing rates across a variety of consumer goods, this reform has resulted in real savings for families, increasing disposable income and stimulating demand,” the Finance Minister added.
The Confederation of All India Traders (CAIT) reported that Diwali sales reached an unprecedented level of Rs 6.05 lakh this year.
This represents a 25 percent increase over the Rs 4.25 lakh crore in festive sales from the previous year’s Navratri to Diwali period, marking the highest sales recorded in India’s trading history, according to the Research and Trade Development Society, CAIT's research arm.
Brick-and-mortar retail constituted nearly 85 percent of total sales, highlighting a robust recovery of the physical market, the survey indicated.
The reduction in GST rates across essential consumer and retail categories, including confectionery, home decor, footwear, ready-made garments, consumer durables, and everyday items, significantly enhanced price competitiveness and drove purchasing activity.
Approximately 72 percent of surveyed traders reported increased sales volumes directly linked to lower GST rates, as per the survey findings.
Consumers have shown increased satisfaction with stable prices amidst festive demand, supporting continued consumption into the post-Diwali period.
The non-corporate and non-agricultural sector has become a crucial element of India's growth story, supported by 9 crore small businesses, countless small manufacturing units, and the largest consumer base.
Point of View
I recognize the significance of this achievement in the context of India's economic recovery. The record-breaking UPI transactions reflect the positive response to GST reforms and demonstrate the resilience of consumers and retailers alike. It is vital that we continue to support policies that foster growth and enhance the purchasing power of households across the nation.
NationPress
23/10/2025
Frequently Asked Questions
What is the significance of UPI's single-day payments record?
The record signifies a robust increase in consumer spending, attributed to GST rate cuts, which have stimulated purchasing activity during the festive season.
How have GST rate cuts impacted consumer spending?
GST rate reductions have lowered prices on essential goods, making them more affordable, which has in turn increased consumer demand.
What sectors benefited most from the GST reforms?
Sectors such as retail, consumer durables, and everyday necessities saw significant improvements in sales due to competitive pricing from GST cuts.
What was the total sales figure during Diwali this year?
Diwali sales reached an all-time high of Rs 6.05 lakh crore, marking a 25 percent increase from the previous year.
How does this record impact India's economic growth?
This record reflects the growing purchasing power of consumers and the recovery of the retail sector, contributing positively to India's overall economic growth.
