India’s Unified Payments Interface (UPI) is heading for its strongest month ever, with average daily transactions in October surging to Rs 94,000 crore, up 13 per cent from September, according to data from the National Payments Corporation of India (NPCI).

With more than a week left in the month, UPI is on course to record its highest-ever monthly performance, driven by festive spending around Diwali and recent Goods and Services Tax (GST) rate cuts. The digital payments platform, which handles nearly 85 per cent of India’s online transactions, continues to cement its position as the backbone of the country’s fintech ecosystem.

Diwali and GST cuts boost spending momentum

The festive season has given a strong push to digital transactions, with consumers spending more on travel, shopping, and gifts. UPI hit a record 740 million transactions in a single day on the eve of Diwali, reflecting the surge in festive payments.

So far this month, the platform has averaged 695 million transactions a day, a 6 per cent increase over September’s record of 654 million. By October 20, UPI had crossed the Rs 1 lakh crore mark in daily transaction value six times, twice the number of such days recorded last month. This steady momentum beyond the usual start-of-month peak – often driven by salary credits and EMI payments – indicates a broader rise in consumer spending and adoption of digital payments.

UPI is expected to surpass the Rs 28 lakh crore mark in total monthly value, breaking the previous record of Rs 25 lakh crore. This would represent one of the sharpest month-on-month growth phases in recent years for India’s flagship payments platform.

Typically, daily transaction values tend to fall to around Rs 60,000 crore by mid-month. However, strong festive activity and discounts, combined with GST rate cuts, have kept UPI values elevated throughout October.

Since its launch in 2016, UPI has transformed India’s payment landscape by enabling instant, low-cost digital transfers across banks and fintech platforms. From street vendors to large retailers, its adoption has expanded rapidly, making it the preferred mode of payment for millions.