Transactions through India’s Unified Payments Interface (UPI) remained close to record levels in August, with the value of transactions reaching ₹29.82 lakh crore, according to data released by the National Payments Corporation of India (NPCI).
UPI transaction volume also hit a new record of 24.51 billion transactions in August, up from 23.66 billion in July.
UPI Transaction Volume Hits New High
The number of UPI transactions increased from 22.72 billion in June to 23.2 billion in May and then reached 23.66 billion in July.
In August, transaction volume rose 22% year-on-year, compared with 19.63 billion transactions recorded in August last year.
The total value of UPI transactions also increased significantly, rising from ₹24.85 lakh crore in August 2025 to ₹29.82 lakh crore in August 2026, marking around 20% annual growth.
The highest monthly transaction value so far was ₹29.9 lakh crore, recorded in both May and July 2026.
Festive Season Boosts Digital Payments
Industry experts said festive activities, including Raksha Bandhan, helped increase UPI usage during August. Higher peer-to-peer transfers, gifting and everyday digital payments contributed to the rise in transaction volumes.
Experts expect the upcoming festive season to provide another boost to digital payments, while newer services such as credit on UPI could create additional growth opportunities.
They also highlighted the need for stronger and more reliable digital payment infrastructure as UPI usage continues to expand.
UPI Now Available in 11 Countries
UPI’s international presence is also growing. The payment system is currently accepted in 11 countries, with Uzbekistan being the latest addition.
The other countries where UPI is accepted include Singapore, UAE, France, Mauritius, Nepal, Bhutan, Qatar, Sri Lanka, Cambodia and Greece.
UPI Transforms India’s Digital Payments
Launched on August 25, 2016, UPI has transformed the way people in India make digital payments.
According to the data, the value of UPI transactions increased from just ₹0.07 lakh crore in FY17 to around ₹314 lakh crore in FY26.
Over the past decade, UPI has grown into one of India’s most widely used digital payment systems, supporting instant payments between individuals as well as payments to merchants.
