Diwali Sales, GST 2.0 Boost UPI Usage In October; Daily Transactions Cross Rs 96,000 Crore

Diwali sales and the roll-out of revised goods and services tax framework has fuelled the usage of Unified Payments Interface (UPI) in October, with average daily transactions crossing the Rs 96,000 crore-mark, as per the data shared by the National Payments Corporation of India (NPCI).

The average daily value stood at Rs 96,638 crore as of Wednesday, Oct. 22, which is up 16% as compared to Rs 82,991 crore in September, the NPCI data showed.

A surge has been also been logged in terms of the average daily volume, which stands at 68 crore daily transactions in October so far. This is 4% higher as against 65.4 crore transactions in September.

The data suggests that October is likely to emerge as one of the sharpest months of growth for UPI, which already accounts for 85% of all digital transactions in the country.

The Diwali Factor

A jump in the daily volume and value of UPI transactions was seen during the period of Diwali in 2024 as well. This year too, a similar spike has been recorded. In October so far, there has been six instances when the average daily transaction value crossed Rs 1 lakh crore, as compared to thrice in September.

The period around Diwali is marked by festive season sales — both offline and online — which leads to a spurt in UPI transactions.

The daily volumes have also hit fresh highs, with number of UPI transactions soaring to as high as 74 crore on the eve of Diwali.

Another factor which significantly contributed to the surge is the cut in GST rates, which has boosted consumption. Several buyers are considered to have held on to their purchases in September, as they waited for the reduction in tax rates to come into effect.

Although GST 2.0 — which eliminated the tax slabs of 12% and 28% and retained only 5% and 18% — was rolled out on Sept. 22, the on-ground impact was seemingly felt in the subsequent days, mostly with the onset of October.