The growth rate of UPI continues to show significant increase in August, as Indians made more digital payments than before. Although the total transaction value remained close to the record level, the number of transactions this month set a new record.
According to data published by the National Payments Corporation of India (NPCI) on Tuesday, 24.51 billion transactions worth 29.82 lakh crore rupees were conducted via UPI in August. The number of transactions reached a record high of 24.51 billion, surpassing July's figure of 23.66 billion. In June, the transaction volume was 22.72 billion, and in May, it was 23.2 billion.
Compared to the same period last year, August showed a 22% growth, reaching 24.51 billion transactions compared to 19.63 billion in August of last year. This growth indicates the widespread use of UPI for daily transactions, including person-to-person transfers, payments in stores, and other merchants.
In terms of value, UPI transactions amounted to 29.82 lakh crore rupees in August. This amount was slightly lower than the record of 29.9 lakh crore rupees recorded in May and July 2026. Nevertheless, the August figure exceeded 24.85 lakh crore rupees registered in August of last year, representing an annual increase of about 20 percent. Thus, although the transaction value did not break the record, the number of payments through UPI set a new maximum.
The main reason cited for the increase in UPI transactions is the more active use of the system during the festive season. An increase in transaction volume was also observed during festivals such as Raksha Bandhan. This led to an increase in daily peer-to-peer transfers and small gifts.
Furthermore, the upcoming festive season may stimulate further development of UPI, as more people will prefer digital payments for purchases, gifts, and other expenses. At the same time, the availability of UPI is growing outside of India.
This payment system is now accepted in 11 countries, with Uzbekistan being the latest country added. Other countries where UPI operates include Singapore, the United Arab Emirates, France, Mauritius, Nepal, Bhutan, Qatar, Sri Lanka, Cambodia, and Greece.