India’s Unified Payments Interface (UPI) recorded an unprecedented increase in digital payments in October 2026, setting new records in both transaction volume and value. For the first time, the average daily transaction value crossed ₹1 lakh crore, while the total value of payments during the month reached ₹31.53 lakh crore.
According to data released by the National Payments Corporation of India (NPCI), UPI processed 25.47 billion transactions in October. The average number of daily transactions stood at approximately 821 million. The strong performance is being attributed to increased consumer spending and shopping activity during the festive season.
October also became the first month in which the total value of UPI transactions crossed the ₹30 lakh crore mark, highlighting the growing use of digital payments across the country.
UPI Sets New Record in Daily and Monthly Transactions
UPI achieved a major milestone in October as its average daily transaction value exceeded ₹1 trillion for the first time.
Before this, September 2026 held the record, with average daily transactions worth approximately ₹98,000 crore. The total transaction value for October reached ₹31.53 trillion, surpassing the previous monthly record of ₹29.9 trillion registered in May 2026.
The latest figures indicate that UPI has continued to expand its reach, with consumers increasingly relying on digital payment services for everyday purchases and other financial transactions.
25.47 Billion UPI Transactions Recorded in October
NPCI data shows that 25.47 billion transactions were completed through UPI during October. This represents an average of around 821 million transactions every day, equivalent to more than 9,502 transactions per second.
The previous record for average daily transaction volume was recorded in September 2026, when approximately 802 million transactions were processed per day.
In terms of monthly transaction volume, August 2026 held the earlier record with 24.5 billion transactions.
NPCI is responsible for operating the UPI payment system, which accounts for approximately 89% of India’s total digital payment transactions.
MDR Charges Implementation Postponed Until After Diwali
The record-breaking UPI performance comes amid discussions about introducing Merchant Discount Rate (MDR) charges for digital payment transactions.
However, NPCI postponed the implementation of the proposed MDR charges until after Diwali, which falls in the second week of November.
Merchant associations, fintech businesses and payment service providers had requested a delay, expressing concerns that introducing additional charges just before the festive shopping season could affect consumer spending.
There have also been discussions regarding the proposed MDR rates, applicable policies and the categories of UPI transactions that would come under the new fee structure.
Proposed MDR of 0.4% on Merchant Transactions Above ₹2,000
In September, the UPI Steering Committee proposed an MDR rate of 0.4%, equivalent to 40 basis points, for merchant transactions exceeding ₹2,000.
Merchant Discount Rate is the processing fee charged to merchants for accepting digital payments.
At a rate of 0.4%, the fee would amount to ₹8 on a ₹2,000 transaction and ₹40 on a ₹10,000 transaction. The proposed structure is expected to generate additional revenue of approximately ₹15,000 crore for banks and payment companies.
This additional income could provide financial support for further investment in India’s digital payment infrastructure and ecosystem.
Disclaimer: This article is intended for general informational purposes only and is based on the information provided in the source material. Transaction figures, proposed MDR rates and implementation timelines may be subject to changes or official clarifications. Readers are advised to refer to NPCI and other relevant official announcements for the latest information. The article should not be considered financial, banking or investment advice.