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UPI clears a record 25.47 billion payments in October as daily value crosses Rs 1 lakh crore for the first time
Festive shopping pushed volumes up 23% from a year ago, but value grew a slower 16% because Dhanteras and Diwali fall in November this year, and the pending merchant fee on bigger UPI payments is still on hold.
India's Unified Payments Interface processed 25.47 billion transactions worth Rs 31.53 lakh crore in October 2026, both the highest on record, according to data the National Payments Corporation of India (NPCI) released on November 1. Volume rose 23% and value 16% from October 2025. Against September, when UPI handled 24.07 billion payments worth Rs 29.37 lakh crore, volume was up 5.8% and value 7.4%, Entrackr reported.
The cleaner measure is the daily average, since October has one more day than September. UPI averaged about 822 million transactions a day, up from 802 million, and the average daily value reached Rs 1,01,707 crore, the first time it has crossed Rs 1 lakh crore, against Rs 97,913 crore in September. The Economic Times reported that payments peaked at 873 million on October 9, the weekend before Navratri, and stayed high until October 19, a day before Dussehra.
Why did value lag volume? Last year Dhanteras and Diwali fell in October, so the biggest festive purchases landed in that month; this year both fall in November. Cashfree co-founder Reeju Datta told BusinessLine this calendar shift is the main reason value grew more slowly than the number of payments. ET also pointed to softer demand for premium electronics, whose prices have risen 30 to 40% in recent months partly because of a jump in memory chip prices. The month also marks a rebound after September, when volume had dipped from August's 24.51 billion.
The record comes while a merchant discount rate (MDR) on some UPI payments remains on hold. Under the framework, a 0.4% fee would apply to specified person-to-merchant payments above Rs 2,000, capped at Rs 300 for payments of Rs 75,000 and above, while payments of Rs 2,000 or less and person-to-person transfers stay free. NPCI's UPI and Services Steering Committee decided on October 13 to defer the October 15 start until after Diwali, and a new date is yet to be notified, according to Entrackr and IANS.
Other rails grew too: IMPS moved Rs 7.63 lakh crore in October, up 19% from a year earlier, IANS reported from NPCI data. Fintech executives quoted by ET expect November, with Dhanteras and Diwali, to bring another surge, which also makes it the month in which the delayed MDR could finally kick in.
