Are UPI Transactions Set to Hit Daily Records This Festive Season?
Click to start listening
Synopsis
As UPI transactions soar to Rs 94,000 crore daily, this October is shaping up to be a record month. With Diwali spending and GST cuts fueling growth, experts predict an unprecedented rise in digital payments. Dive into the numbers and trends behind this festive boom in India's digital economy.
Key Takeaways
- UPI transactions reached Rs 94,000 crore daily in October.
- 13% increase compared to September.
- 740 million transactions recorded on Diwali's eve.
- Expected to exceed Rs 28 lakh crore monthly.
- Strong festive season growth driven by Diwali spending.
New Delhi, Oct 22 (NationPress) The Unified Payments Interface (UPI) is experiencing a remarkable surge this festive season, with the average daily transaction value in October soaring by 13 percent compared to September, reaching an impressive Rs 94,000 crore, as reported by the National Payments Corporation of India (NPCI).
With over a week remaining in the month, UPI is poised to achieve its highest-ever monthly performance, fueled by Diwali spending and recent GST rate cuts.
This represents one of the strongest month-on-month growth trends for UPI observed in recent years.
UPI, which facilitates nearly 85 percent of all digital payments in India, has also seen its daily transaction volumes reach unprecedented levels.
On the eve of Diwali, UPI recorded a historic 740 million transactions in a single day.
The average daily volume for the month thus far has been 695 million, which is an increase of more than 6 percent from September’s record of 654 million.
The festive season consistently serves as a significant driver for UPI growth. Last year, both Dusshera and Diwali occurring in October had significantly enhanced digital payment activity.
This year, although Dusshera fell in September, the Diwali celebrations on October 20 have seemingly initiated another wave of growth.
By October 20, UPI surpassed the Rs 1 lakh crore mark in daily transaction value six times this month—double the frequency compared to September.
Generally, most payment platforms observe peak activity at the beginning of the month due to salary and EMI payments, after which spending tends to decline.
UPI transactions usually drop to around Rs 60,000 crore in daily value by mid-month. Given the current momentum, experts forecast that October could establish a new record for UPI.
The monthly transaction value is anticipated to exceed Rs 28 lakh crore for the first time, surpassing the existing record of Rs 25 lakh crore.
Point of View
It's evident that UPI's phenomenal growth during the festive season showcases India's rapid digital transition. The numbers reflect a significant cultural shift towards cashless transactions, driven by convenience and necessity. With experts optimistic about UPI's trajectory, it’s clear that digital payments are here to stay.
NationPress
22/10/2025
Frequently Asked Questions
What is UPI?
The Unified Payments Interface (UPI) is a real-time payment system developed by the National Payments Corporation of India, which allows users to link multiple bank accounts to a single mobile application.
How much has UPI transaction value increased in October?
UPI transaction value has increased by 13 percent in October, reaching Rs 94,000 crore daily.
What factors are driving UPI's growth?
Factors driving UPI's growth include increased Diwali spending, recent GST rate cuts, and the continued adoption of digital payment methods.
How many transactions did UPI record on Diwali's eve?
UPI recorded an all-time high of 740 million transactions in a single day on the eve of Diwali.
What is the expected monthly transaction value for UPI this October?
The monthly transaction value for UPI is expected to surpass Rs 28 lakh crore for the first time.
