UPI achieved a historic milestone in October 2026, recording a daily average transaction volume of nearly ₹1 lakh crore for the first time. Heavy festive shopping ahead of Diwali propelled digital payments to unprecedented heights across the country.

October 2026 Statistics (NPCI Data):

Total Transactions: 25.47 billion (2,547 crore)

Total Value Processed: ₹31.53 lakh crore

Year-on-Year Growth: Compared to 20.7 billion transactions in October 2025, transaction volume surged by roughly 23%, while the total monetary value grew by 16%.

Decision on MDR (Merchant Discount Rate):

The government had recently announced plans to reintroduce a Merchant Discount Rate (MDR) on UPI transactions.

The framework proposed a 0.4% MDR on select merchant transactions exceeding ₹2,000, which was slated to take effect on October 15, 2026.

However, on October 13, the National Payments Corporation of India (NPCI) issued an official statement confirming that the levy has been postponed until after Diwali.

The UPI & Services Steering Committee deferred the rollout taking into account high consumer spending during Karwa Chauth, Diwali, and the wedding season, alongside representations from merchant bodies.

Transforming Daily Transactions

From local grocery kiosks to major automotive dealerships, platforms like PhonePe, Google Pay, and Paytm have established digital transactions as the standard medium of exchange. Millions of users rely on instant digital transfers daily, significantly reducing dependence on physical cash and ATM withdrawals.