The Unified Payments Interface (UPI), launched on April 11, 2016 by the National Payments Corporation of India (NPCI) under the regulatory oversight of the Reserve Bank of India (RBI), has emerged as the backbone of India’s digital payments ecosystem and a critical driver of financial inclusion.
Over a decade of operations, UPI has demonstrated extraordinary scale and momentum. Annual transaction volume expanded from just 2 crore transactions in FY 2016-17 to over 24,162 crore transactions in FY 2025-26, representing an almost 12,000‑fold surge in transaction volume, as per a Finance Ministry statement.
Transaction value rose sharply from Rs 0.07 lakh crore in FY 2016-17 to approximately Rs 314 lakh crore in FY 2025-26, translating into a more than 4,000‑fold increase in transaction value.
This simultaneous expansion in both volume and value highlights UPI’s deepening role in supporting high‑frequency retail payments.
The unprecedented scale, reliability, and interoperability achieved by UPI have received global recognition, with the International Monetary Fund (IMF) acknowledging it as the world’s largest real‑time payment system by transaction volume, underscoring India’s leadership in building scalable, inclusive, and innovative digital public infrastructure.
UPI has witnessed a steady and broad-based expansion in institutional participation since its launch. The number of banks live on UPI increased from 44 banks in FY 2016-17, the first year of operations, to 703 banks by FY 2025-26.
An analysis of UPI transactions highlights a clear divergence between volume and value across payment types. Person‑to‑merchant (P2M) transactions account for 63 per cent of total transaction volume, reflecting UPI’s extensive use for high‑frequency, low‑value retail payments. In contrast, person‑to‑person (P2P) transactions dominate transaction value, contributing 71 per cent, indicating their use for higher‑ticket transfers between individuals.
This contrast underscores UPI’s dual role as a mass retail payments platform and a trusted channel for larger‑value fund transfers.
In FY2026, UPI transactions totalling 24,162 crore reflected the platform’s deep integration into everyday digital payment usage across the country. with particularly robust momentum in the merchant segment.
As of 2024, UPI accounts for nearly 49 per cent of the world’s real-time payment transaction volume, a milestone recognised by the International Monetary Fund (IMF) in its report in June 2025.
With over 66 crore transactions processed daily, UPI has surpassed global payment network, reinforcing India’s position as the world leader in instant, secure, and inclusive digital payments.
