UPI Tops Rs 1 Lakh Crore a Day as October Payments Hit Record Rs 31.53 Lakh Crore

Festive payments push UPI to a new milestone

India's Unified Payments Interface processed a record 25.47 billion transactions worth Rs 31.53 lakh crore in October 2026, taking its average daily payment value above Rs 1 lakh crore for the first time. Festive shopping and online sales helped lift both the number of payments and the amount moving through the network.

The figures attributed to the National Payments Corporation of India (NPCI), which operates UPI, show about 822 million transactions a day during October. The monthly transaction count rose 23% from October 2025, while the value increased 16%.

UPI allows people to transfer money instantly between bank accounts through compatible payment applications. Its October total includes payments to businesses and transfers between individuals, covering much more than shopping alone. One lakh crore rupees equals one trillion rupees, putting the monthly value at Rs 31.53 trillion.

The record arrived as a proposed merchant discount rate, or MDR, on selected payments to businesses was deferred until after Diwali. The framework had been scheduled to begin on October 15. For merchants handling festive purchases, the postponement delayed a new payment acceptance cost during a busy trading period.

October's growth also went beyond the effect of having one more day than September. Average daily transaction numbers increased from about 802 million to 822 million, showing that payment activity became busier even after allowing for the different lengths of the two months.

What the daily and monthly figures show

October's Rs 31.53 lakh crore total was about 7.4% above September's Rs 29.37 lakh crore. Transaction numbers increased by roughly 5.8%, from about 24.07 billion to 25.47 billion. Those changes mean the value moving through UPI grew faster than the number of payments compared with the previous month.

The daily payment value was put at about Rs 1,01,707 crore, up from Rs 97,913 crore in September. A lower October daily figure of Rs 1,00,871.30 crore was also published. Dividing the rounded monthly total of Rs 31.53 lakh crore by October's 31 days gives approximately Rs 1,01,710 crore, close to the higher figure.

The daily transaction count was given more precisely as 821.69 million, compared with 802.28 million in September. On those figures, daily volume increased about 2.4%. Using Rs 1,01,707 crore for October, daily payment value increased about 3.9%.

For readers comparing Indian and international counting systems, October's 25.47 billion payments equal 2,547 crore transactions. The daily average of about 822 million equals approximately 82.2 crore payments.

How the payment pattern changed since August

September's lower monthly total followed an August count of about 24.51 billion transactions worth Rs 29.82 lakh crore. September then recorded about 24.07 billion transactions worth Rs 29.37 lakh crore, before October set new monthly records.

Daily activity followed a different pattern because August had 31 days and September had 30. Average daily transaction numbers increased from about 790.61 million in August to 802.28 million in September, even though September's monthly count was lower.

The sequence helps explain why both measures matter. Monthly totals show how much business the network handled across the whole month. Daily averages make comparisons between months of different lengths easier.

• August 2026: About 24.51 billion payments worth Rs 29.82 lakh crore, averaging 790.61 million transactions a day.
• September 2026: About 24.07 billion payments worth Rs 29.37 lakh crore, averaging 802.28 million transactions a day.
• October 9: Daily transaction volume reached 873 million, the reported peak for October.
• October 15: The proposed start date for selected merchant charges was postponed until after Diwali.
• October 2026: Monthly payments reached 25.47 billion, worth Rs 31.53 lakh crore.
• November 1, 2026: NPCI highlighted the milestone in a public social media post.

Festive shopping lifted payment sizes

Navratri, Durga Puja and major online sales contributed to October's activity. Daily transaction numbers remained elevated through October 19 before easing, placing much of the increase around the festive shopping period.

Reeju Datta, co-founder of payments company Cashfree, linked the rise to people making larger purchases alongside their usual payments.

The festive season drove this rise. Navratri and the big online sales fell in October, and people used UPI for bigger festive purchases along with their everyday payments.

Datta said payment numbers had increased from April through August while daily payment value stayed broadly flat and the average payment became smaller. In September and October, value grew faster than transaction numbers, lifting the average payment size for two consecutive months.

The rounded monthly totals support that recent change. Dividing payment value by transaction count gives an average payment of approximately Rs 1,220 in September and Rs 1,238 in October, an increase of about 1.5%.

The comparison with a year earlier moves in the opposite direction. October 2025 recorded 20.7 billion payments worth Rs 27.27 lakh crore, giving an average of about Rs 1,317. October 2026 therefore combined a modest increase in average payment size from September with an average still below the level a year earlier.

Why record payments can accompany weaker retail categories

Electronics purchases faced pressure during the festive period. Prices of smartphones, laptops and other electronics reportedly rose by 30% to 40% in recent months, partly because memory chips became more expensive.

Amazon's Great Indian Festival and Flipkart's Big Billion Days sales were reported to be running 10% to 12% below the previous year's level as of October 19, with weak demand for premium electronics among the reasons cited.

UPI's record fits alongside those weaker categories because the network carries a much wider range of transactions. Food, dining, clothing, bills, routine purchases and transfers between people all contribute to its totals. Higher prices can also increase the money transferred for a purchase even when a customer buys the same number of items.

For businesses, the result is a mixed picture: more payment activity across the network, but different trading conditions depending on what they sell. October's 23% growth in UPI transaction numbers was faster than the 16% increase in value, consistent with the lower average payment compared with October 2025.

What the proposed merchant charges would cover

The proposed MDR framework would apply to selected person-to-merchant payments, often shortened to P2M. Those are payments from an individual to a business. Person-to-person transfers, known as P2P, would remain free under the described proposal.

MDR is a fee charged to a merchant for accepting a payment. A merchant receiving Rs 5,000, for example, would face a Rs 20 fee if that transaction qualified for the proposed rate of 0.4%.

The more detailed description of the proposal sets out different charges for different merchant groups. Qualifying UPI payments above Rs 2,000 in selected categories, including railways, telecom services, insurance and fuel, would attract a flat Rs 5 charge. Qualifying payments above Rs 2,000 to large merchants would attract a 0.4% charge, capped at Rs 300 per transaction.

At the percentage rate, a Rs 50,000 payment would generate a Rs 200 fee. The Rs 300 cap would be reached at Rs 75,000, after which the fee would stop increasing.

Estimates attributed to NPCI put the share of merchant transactions covered by the framework at around 4%, with more than 95% remaining exempt. Merchant bodies, payment companies and fintech businesses sought postponement during festive sales, citing consumer sentiment and concerns about rates and how the rules would apply.

NPCI's UPI and Services Steering Committee was reported to have deferred implementation until immediately after Diwali. No exact revised start date was given; it was to be notified separately. The rates therefore remain a described proposal awaiting the revised rollout.

Who pays for a growing payments network?

October's record brings the cost of operating UPI into sharper focus. Banks and payment companies must support a network handling hundreds of millions of transactions a day, including periods when shopping activity rises sharply.

Akshay Mehrotra, managing director and group chief executive officer of digital lender Fibe, described the balance between affordable payments and the commercial needs of the businesses supporting them.

As transaction volumes rise during peak consumption periods, it is important to keep digital payments affordable for consumers and merchants while ensuring the ecosystem remains commercially sustainable.

The proposed limited coverage would concentrate new charges on a small share of merchant payments. Merchants within that group would need to account for the fee when calculating the cost of receiving payments, while exempt transactions would continue outside the proposed charge.

UPI's scale has grown sharply over the past decade. Annual transaction volume rose from 1.78 crore in the financial year 2016–17 to more than 24,162 crore in 2025–26. Annual payment value increased from Rs 0.07 lakh crore to Rs 314 lakh crore over the same period.

Access and confidence matter beyond the big sales

Anand Kumar Bajaj, founder, managing director and chief executive officer of PayNearby, said festive activity reflected growing familiarity with digital payments across different communities.

The festive season further reinforces the growing familiarity and confidence with which people are embracing digital transactions.

Bajaj said the next stage should focus on making payment services more inclusive, trusted and accessible at the last mile. Neighbourhood retailers have a role in helping customers become comfortable with digital payments, particularly where people still need assistance.

Other instant transfers also grew in October. The Immediate Payment Service, or IMPS, handled Rs 7.63 lakh crore, up 19% from a year earlier. It averaged 12.10 million transfers a day, worth Rs 24,601 crore. UPI, which was developed over IMPS infrastructure, supports payments between bank accounts through participating applications.

November's Dhanteras and Diwali spending were expected to support further activity. Mehrotra pointed to gold and traditional festive purchases as possible drivers of larger payments. The next monthly figures would show how much of that expected spending passed through UPI.

Key Points

• UPI processed a record 25.47 billion transactions worth Rs 31.53 lakh crore in October 2026.
• Average daily activity reached about 822 million payments, with daily value crossing Rs 1 lakh crore for the first time.
• Transaction volume rose 23% from October 2025, while value increased 16%.
• Daily payment numbers increased about 2.4% from September, allowing for October's extra day.
• Festive shopping and online sales helped lift the average payment size compared with September.
• Proposed charges on selected merchant payments were deferred until after Diwali, with an exact implementation date still to be announced.