Discover how India's Unified Payments Interface (UPI) transactions soared to a near-record Rs 29.8 lakh crore in August, driven by festive demand and expanding its global footprint to 11 countries, solidifying its role in the digital payments landscape.
Key Points
- UPI transactions reached Rs 29.8 lakh crore in August, close to the record high of Rs 29.9 lakh crore.
- Transaction volume hit a new record of 24.51 billion in August, marking a 22 per cent annual increase.
- Festive activities, such as Raksha Bandhan, significantly boosted peer-to-peer transfers and small-ticket gifting.
- UPI has expanded its international footprint, now accepted in 11 countries, with Uzbekistan as the latest addition.
- Future growth is anticipated with the upcoming festive season and the maturation of new use cases like credit on UPI.
Transactions through the popular Unified Payments Interface (UPI) were at Rs 29.8 lakh crore in August, near the record-high level, according to data released by the National Payments Corporation of India (NPCI). UPI transactions touched a record high of Rs 29.9 lakh crore in May and July 2026.
As per the data released on Tuesday, UPI transactions in volume terms touched a record of 24.51 billion in August, much higher than 23.66 billion in the previous month. The volume was 22.72 billion in June and 23.2 billion in May of this year. The value of transactions was Rs 29.82 lakh crore in August, up from Rs 24.85 lakh crore in the same month a year ago, registering 20 per cent annual growth. At the same time, UPI volume rose by 22 per cent on an annual basis to 24.51 billion in August as against 19.63 billion in the same month last year, according to NPCI data.
Understanding UPI's Growth Drivers
NPCI, an initiative of the Reserve Bank of India (RBI) and the Indian Banks' Association, is an umbrella organisation for operating retail payments and settlement systems in India (IBA). It runs the UPI used for real-time payments between peers or at merchants' end while making purchases.
The volume growth in August was further bolstered by festive activity such as Raksha Bandhan, which naturally drove a surge in everyday peer-to-peer (P2P) transfers and small-ticket gifting, and consistent aggregate transaction value with an increase in volume over the past three months underscores the expanding reach and depth of the UPI ecosystem, Cashfree Payments co-founder Reeju Datta said. Looking ahead, he said, the upcoming festive season presents an exciting growth frontier.
Global Expansion And Future Outlook
As the festive season approaches and new use cases such as credit on UPI start to mature, continued investment in resilient, intelligent infrastructure will be key to sustaining India's leadership in digital payments, Network People Services Technologies (NPST) co-founder and CEO Deepak Chand Thakur said.
As far as overseas presence is concerned UPI now is accepted in 11 countries, with Uzbekistan being the latest entry. The other countries where UPI is accepted are Singapore, the United Arab Emirates, France, Mauritius, Nepal, Bhutan, Qatar, Sri Lanka, Cambodia, and Greece.
The UPI, launched on August 25, 2016, has transformed India's digital payments landscape, with transaction value surging from Rs 0.07 lakh crore in FY17 to around Rs 314 lakh crore in FY26, a more than 4,000-fold increase over the decade.
