Unified Payments Interface (UPI) hit a new monthly high in August, with transaction volumes crossing 24 billion for the first time in a month and reaching 24.51 billion, according to data released by the National Payments Corporation of India (NPCI) on Tuesday.The record came as transaction activity picked up during the festive period, particularly around Raksha Bandhan. UPI processed transactions worth Rs 29.82 lakh crore during the month, taking the value close to the record Rs 29.9 lakh crore recorded in May and July 2026.The August volume was 22% higher than the 19.63 billion transactions recorded in the same month last year. It also marked a rise from 23.66 billion transactions in July, 22.72 billion in June and 23.2 billion in May.In value terms, August transactions were up 20% from Rs 24.85 lakh crore a year earlier.
Festive activity adds to UPI momentum
The rise in transaction volumes in August was further supported by Raksha Bandhan, which led to higher peer-to-peer (P2P) transfers and small-ticket gifting, Cashfree Payments co-founder Reeju Datta said.“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.Datta said the upcoming festive season presented an exciting growth frontier.Network People Services Technologies (NPST) co-founder and CEO Deepak Chand Thakur said the next phase of growth would come as newer UPI use cases develop.“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.
From 1.78 crore transactions to 24,162 crore
The latest monthly record comes as UPI continues to expand rapidly since its launch on August 25, 2016.Its annual transaction volume has grown from 1.78 crore in 2016-17 to more than 24,162 crore in 2025-26, an almost 13,000-fold increase.Transaction value has also climbed sharply over the decade, from Rs 0.07 lakh crore in FY17 to around Rs 314 lakh crore in FY26 — an increase of more than 4,000 times.The growth trajectory reached another milestone in May 2026, when monthly UPI transactions crossed 2,300 crore for the first time. The month recorded 2,320 crore transactions.
UPI now accepted in 11 countries
UPI’s expansion has also extended beyond India. The payment system is now accepted in 11 countries, with Uzbekistan the latest addition.The other countries where UPI is accepted are 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), is the umbrella organisation for operating retail payments and settlement systems in India. It runs UPI, which enables real-time payments between peers and at merchants’ end while making purchases.
