UPI Experiences Surge: Digital Payments Reach Record 24.51 Billion Transactions in August
Unified Payments Interface (UPI) achieved a record 24.51 billion transactions in August, marking the first time monthly volumes surpassed 24 billion. The data, released by the National Payments Corporation of India (NPCI), reflects a significant increase in transaction activity during the festive period, particularly around Raksha Bandhan. In terms of value, UPI processed transactions worth Rs 29.82 lakh crore, nearing the record Rs 29.9 lakh crore seen in May and July 2026.
The August transaction volume represented a 22% increase from the 19.63 billion transactions recorded in the same month last year. It also showed growth from July’s 23.66 billion, June’s 22.72 billion, and May’s 23.2 billion. In value terms, August transactions rose 20% from Rs 24.85 lakh crore a year earlier.
Festive activity adds to UPI momentum
The surge in transaction volumes during August was driven by Raksha Bandhan, which led to increased peer-to-peer (P2P) transfers and small-ticket gifting. Reeju Datta, co-founder of Cashfree Payments, noted that the festive activity naturally boosted everyday transactions. He emphasized that the consistent growth in transaction volume over the past three months reflects the expanding reach of the UPI ecosystem.
Datta also pointed out that the upcoming festive season presents new growth opportunities. Deepak Chand Thakur, co-founder and CEO of Network People Services Technologies (NPST), indicated that the next phase of growth would emerge as new UPI use cases develop. He stressed the importance of investing in resilient infrastructure to maintain India’s leadership in digital payments.
From 1.78 crore transactions to 24,162 crore
Since its launch on August 25, 2016, UPI has experienced rapid expansion. Its annual transaction volume has surged from 1.78 crore in 2016-17 to over 24,162 crore in 2025-26, representing an almost 13,000-fold increase. The transaction value has also risen dramatically, from Rs 0.07 lakh crore in FY17 to approximately Rs 314 lakh crore in FY26, an increase of more than 4,000 times.
A significant milestone was reached in May 2026 when monthly UPI transactions exceeded 2,300 crore for the first time, with the month recording 2,320 crore transactions.
UPI now accepted in 11 countries
UPI’s reach has extended beyond India, with the payment system now accepted in 11 countries, including Uzbekistan, the latest addition. Other countries where UPI is accepted include Singapore, the United Arab Emirates, France, Mauritius, Nepal, Bhutan, Qatar, Sri Lanka, Cambodia, and Greece. NPCI, an initiative of the Reserve Bank of India (RBI) and the Indian Banks’ Association (IBA), oversees UPI, facilitating real-time payments between peers and merchants.
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