UPI transactions surge 13% in October, set to hit record ₹28 lakh crore amid Diwali boom

India’s digital payments backbone sees festive cheer with record-breaking volumes

October 22, 2025

UPI Diwali Boom: Digital Payments Hit Record ₹94,000 Crore a Day

Festive spending and GST cuts drive highest-ever monthly digital payments

India’s Unified Payments Interface (UPI) is witnessing a record-breaking festive season boom, with the average daily transaction value in October rising 13 per cent over September to reach ₹94,000 crore, data from the National Payments Corporation of India (NPCI) shows.

With more than a week remaining in the month, UPI is on course to deliver its highest-ever monthly performance, driven by Diwali shopping and the recent Goods and Services Tax (GST) rate cuts that have boosted consumer sentiment.

According to NPCI data, this is among the strongest month-on-month growth trends for the digital payments platform in recent years. UPI, which accounts for nearly 85 per cent of all digital payments in India, has also seen record transaction volumes.

On the eve of Diwali, UPI recorded 740 million transactions in a single day, an all-time high. The average daily transaction volume for October so far stands at 695 million — a 6 per cent jump from September’s 654 million.

The festive season has traditionally driven UPI growth, with Diwali and Dusshera typically pushing digital spending to new highs. Last year, both festivals falling in October had produced a similar spike in activity.

This year, while Dusshera was celebrated in September, the Diwali festivities on October 20 appear to have triggered another sharp rise in digital payments.

By October 20, UPI had crossed the ₹1 lakh crore mark in daily transaction value six times this month — twice as many days as recorded in September.

Typically, payment activity peaks at the start of the month due to salary credits and EMI payments before tapering off. However, this October, sustained festive demand has kept UPI usage elevated throughout.

Industry analysts expect October’s monthly transaction value to surpass ₹28 lakh crore, setting a new all-time record and breaking the previous high of ₹25 lakh crore.

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