India's Unified Payments Interface (UPI) recorded a significant surge in usage during the first half of the current fiscal year, with transaction volumes climbing 27% to approximately 145 billion. This growth marks a substantial increase from the 114 billion transactions recorded during the same period in the previous financial year, according to data released by the National Payments Corporation of India (NPCI).
While volume growth remained robust, the value of UPI transactions rose at a slightly more moderate rate of 20%, reaching Rs 177 lakh crore compared to Rs 148 lakh crore in the first half of the previous fiscal year. Monthly data for September showed a slight moderation, with volume dipping 1.7% to 24.07 billion from 24.5 billion in August. Similarly, the total transaction value for September declined 1.5% to Rs 29.37 lakh crore.
Industry analysts attributed the monthly dip in September primarily to the shorter month length compared to August. Despite the monthly moderation, the average daily transaction count remained higher in September at 802 million, compared to 791 million in August. These figures are released as the digital payments ecosystem prepares for the implementation of a new merchant discount rate (MDR) fee, scheduled for October 15. This fee will apply to high-value UPI transactions exceeding Rs 2,000, while person-to-person payments and transactions for small merchants remain exempt. The UPI, which launched in 2016, has seen its transaction value grow from Rs 0.07 lakh crore in FY17 to approximately Rs 314 lakh crore in FY26.
The National Payments Corporation of India serves as an umbrella organization for retail payments and settlement systems in the country. On a month-on-month basis, the number of UPI transactions declined slightly in September.
According to The Hindu, a legal challenge against the implementation of the new UPI merchant discount rate was scheduled for hearing before the Supreme Court of India.
According to The Hindu, the average daily transaction count on UPI rose to 802 million in September 2026, up from 791 million per day recorded in August.
