UPI hits record high with 24.51 billion transactions in August: What drove the surge?

New Delhi: India's Unified Payments Interface (UPI) recorded an all-time high of 24.51 billion transactions in August, with festive spending during Raksha Bandhan contributing to the surge, according to data released by the National Payments Corporation of India (NPCI) on Tuesday.

The transactions were worth Rs 29.82 lakh crore, making August the second-highest month in terms of transaction value after the near-record Rs 29.9 lakh crore recorded in May and July.

UPI transaction volume increased from 23.66 billion in July to 24.51 billion in August. It stood at 23.2 billion in May and 22.72 billion in June.

Compared with August 2025, transaction volume rose 22 per cent, from 19.63 billion to 24.51 billion.

Transaction value also increased 20 per cent year-on-year, from Rs 24.85 lakh crore in August last year to Rs 29.82 lakh crore this August.

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Raksha Bandhan boosts digital payments

The record August volume was partly driven by festive activity around Raksha Bandhan, which led to an increase in peer-to-peer transfers and small-value payments, industry experts said.

Cashfree Payments co-founder Reeju Datta said the rise in transaction volume, alongside consistently high aggregate value over the past three months, reflected the growing reach and usage of UPI.

With the festive season ahead, the digital payments ecosystem is expected to see further growth.

Network People Services Technologies co-founder and CEO Deepak Chand Thakur said emerging use cases such as credit on UPI could further expand adoption, while investment in resilient digital infrastructure would remain important.

UPI now accepted in 11 countries

UPI's international footprint has also continued to expand. The payment system is now accepted in 11 countries, with Uzbekistan the latest addition.

The other countries include Singapore, the UAE, France, Mauritius, Nepal, Bhutan, Qatar, Sri Lanka, Cambodia and Greece.

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UPI marks a decade of rapid growth

Launched on August 25, 2016, UPI has transformed India's digital payments ecosystem over the past decade.

Transaction value has grown from Rs 0.07 lakh crore in 2016-17 to around Rs 314 lakh crore in 2025-26, representing an increase of more than 4,000 times.

Annual transaction volume has also risen sharply, from 1.78 crore transactions in 2016-17 to more than 24,162 crore in 2025-26, an almost 13,000-fold increase.

UPI crossed another milestone in May 2026, when monthly transaction volume exceeded 2,300 crore for the first time, reaching 2,320 crore transactions.

The latest August figures underline the continued expansion of India's real-time digital payments network as UPI enters its second decade.

With PTI inputs