The Unified Payments Interface (UPI) completes 10 years on Aug. 25, marking a decade that has transformed how India makes digital payments.
Launched in 2016 by the National Payments Corporation of India (NPCI) under the regulatory oversight of the Reserve Bank of India (RBI), UPI has grown from a new payment system into a key part of India's digital payments infrastructure.
According to a PIB report, annual UPI transaction volume increased from 1.78 crore in FY2016-17 to more than 24,162 crore in FY2025-26, representing an almost 13,000-fold increase over the decade.
Transaction value has also expanded sharply, rising from Rs 0.07 lakh crore in FY2016-17 to around Rs 314 lakh crore in FY2025-26, an increase of more than 4,000 times.
UPI Reaches Record Scale
UPI's growth has accelerated significantly in recent years, with the platform processing an average of 66 crore transactions every day in 2026.
Monthly volumes crossed 2,300 crore transactions for the first time in May 2026, when UPI processed 2,320 crore transactions.
Another record followed in July, with the platform handling 2,366 crore transactions worth Rs 29.88 lakh crore.
UPI recorded 30% year-on-year growth in transaction volume in FY2025-26, while transaction value increased 21% during the same period.
The payment system accounted for 84% of India's digital payments in FY2025-26.
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Bank Participation Expands
UPI's expansion has also been supported by a sharp increase in participating banks.
The number of banks live on the platform increased from 44 in FY2016-17 to 703 in FY2025-26. The government said these include public sector banks, private banks, small finance banks, payment banks and cooperative banks.
At its launch in April 2016, 21 banks were part of the UPI ecosystem. The platform recorded around 90,000 transactions in its first month of operations in August 2016.
As of July 2026, 741 banks were live on UPI, reflecting its continued expansion across India's banking system.
Small Payments Drive Transaction Volumes
UPI's growth reflects its widespread use for everyday payments.
Person-to-merchant transactions account for 63% of UPI's transaction volume, highlighting the platform's role in frequent retail payments.
Person-to-person transactions, however, account for 71% of the total transaction value.
Smaller payments remain a major part of UPI usage. Around 86% of person-to-merchant transactions in FY2025-26 were below Rs 500.
Among person-to-person transactions, 59% were below Rs 500, while 41% were above that amount.
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UPI Expands Beyond India
UPI has also expanded beyond its domestic origins and is currently operational in 11 countries, including the United Arab Emirates, France, Bhutan, Sri Lanka, Nepal, Singapore, Mauritius, Qatar, Cambodia, Greece and Maldives.
The government said UPI has evolved into a platform for cross-border digital payments as its international presence continues to grow.
UPI accounted for nearly 49% of global real-time payment transaction volume in 2025, according to the PIB.
The International Monetary Fund has recognised UPI as the world's largest real-time payment system by transaction volume.
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