741 Banks Are Live On UPI Network

UPI is currently operational in 11 countries, namely United Arab Emirates, France, Bhutan, Sri Lanka, Nepal, Singapore, Mauritius, Qatar, Cambodia, Greece and Maldives.

FinTech BizNews Service

Mumbai, 24 August, 2026: The Unified Payments Interface (UPI), launched on 25th August 2016 by the National Payments Corporation of India (NPCI) under the regulatory oversight of the Reserve Bank of India (RBI) completes 10 years of transforming digital payments in India. UPI has emerged as the backbone of India’s digital payments ecosystem and a critical driver of financial inclusion.  

Over a decade of operations, UPI has demonstrated extraordinary scale and momentum. Annual transaction volume expanded from just 1.78 crore transactions in FY 2016-17 to over 24,162 crore transactions in FY 2025-26, representing an almost 13,000‑fold surge in transaction volume. Parallelly, transaction value rose sharply from Rs0.07 lakh crore in FY 2016-17 to approximately Rs314 lakh crore in FY 2025-26, translating into a more than 4,000‑fold increase in transaction value.

UPI has emerged as one of the most successful pillars of India’s Digital Public Infrastructure (DPI), providing an interoperable, real-time payments platform that enables seamless peer-to-peer and peer-to-merchant transactions through a single application. Today, it is the preferred mode of payment for millions of users, transforming the way India transacts. By bridging the digital divide, advancing financial inclusion, and expanding access to digital financial services, UPI has empowered individuals and communities across the country while driving broad-based economic participation.

This simultaneous expansion in both volume and value highlights UPI’s deepening role in supporting high‑frequency retail payments. The unprecedented scale, reliability, and interoperability achieved by UPI have received global recognition, with the International Monetary Fund (IMF) acknowledging it as the world’s largest real‑time payment system by transaction volume, underscoring India’s leadership in building scalable, inclusive, and innovative digital public infrastructure.

I.  The Decade in Numbers

Annual Transaction Volume (FY 2016-17 to FY 2026-27*)

Fig 1: UPI Annual Transaction Volume in Crore               *Till 31st July 2026

Annual Transaction Value (FY 2016-17 to FY 2026-27*)

Fig 2: UPI Annual Transaction Value in ₹ Lakh Crore                   *Till 31st July 2026

II.  Monthly Performance, 2026

The Year 2026 marked a significant milestone in the growth trajectory of UPI. Monthly transaction volumes crossed 2,300 crore transactions for the first time in May 2026, reaching 2,320 crore transactions, signalling a new scale of adoption. This momentum continued through the year, with July 2026 recording 2,366 crore transactions, the highest monthly transaction volume in UPI’s decade‑long journey.

III.  Ecosystem Strength, Banks, Apps & Geography

Banks Live on UPI, Unprecedented Participation

UPI has witnessed a steady and broad‑based expansion in institutional participation since its launch. The number of banks live on UPI increased from 44 banks in FY 2016-17, the first year of operations, to 703 banks by FY 2025-26. This onboarding covers public sector banks, private banks, small finance banks, payment banks, and cooperative banks, enabling UPI's deep geographic reach. Each bank functions as a Remitter PSP (processing outgoing transactions) and/or a Beneficiary PSP (receiving funds), with NPCI monitoring performance metrics for all participants.

Fig 4: Number of Banks Live on UPI (FY2017–2026)

IV.  Transaction Segmentation, P2P & P2M Analysis

An analysis of UPI transactions highlights a clear divergence between volume and value across payment types. Person‑to‑merchant (P2M) transactions account for 63% of total transaction volume, reflecting UPI’s extensive use for high‑frequency, low‑value retail payments. In contrast, person‑to‑person (P2P) transactions dominate transaction value, contributing 71%, indicating their use for higher‑ticket transfers between individuals. This contrast underscores UPI’s dual role as a mass retail payments platform and a trusted channel for larger‑value fund transfers.

Fig 5: UPI P2P vs P2M Split - Volume & Value

Transaction Distribution by Ticket Size, Micro-Payments Dominate

In FY2026, UPI transactions totalling 24,162 crore reflected the platform’s deep integration into everyday digital payment usage across the country. with particularly robust momentum in the merchant segment. P2M transactions were largely driven by small‑ticket payments, with 86% below ₹500, highlighting UPI’s deep integration into routine retail and day‑to‑day commerce, even as higher‑value transactions continued to expand. P2P transactions also showed widespread usage for low‑value transfers (59% below ₹500), while a significant 41% of transactions above ₹500 reflects UPI’s growing versatility in facilitating both regular personal payments and higher‑value fund transfers.

Fig 6: UPI transaction distribution by ticket size

V.  UPI on the World Stage

What began as a domestic payments innovation has today evolved into a global benchmark in digital payments.

As of 2025, UPI accounts for nearly 49 % percent of the world’s real-time payment transaction volume, a milestone recognized by the IMF.

With over 66 crores transactions processed daily, UPI has surpassed global payment network, reinforcing India’s position as the world leader in instant, secure, and inclusive digital payments.  

UPI has also emerged as a global platform for cross-border digital payments and is currently operational in 11 countries, namely United Arab Emirates, France, Bhutan, Sri Lanka, Nepal, Singapore, Mauritius, Qatar, Cambodia, Greece and Maldives.

UPI: Transforming India's Payment Landscape

Towards a Unified Payment Ecosystem

India's digital payments ecosystem has undergone a remarkable transformation over the past decade. It is driven by the vision of creating a simple and secure payment system accessible to every citizen. The Unified Payments Interface (UPI), developed by the National Payments Corporation of India (NPCI), has emerged as a cornerstone of India’s digital payments revolution. Today, UPI is accepted in 11 countries, with Greece and the Maldives being the latest to adopt India's real-time payment platform.

UPI and its Evolution

With interoperable design and ease of use, UPI has fundamentally changed the way individuals, businesses and government entities transact.

• Real-time payment system that powers multiple bank accounts through a single mobile application of any participating bank or payment service provider.
• Integrates multiple banking services, fund transfers and merchant payments on a single platform.
• Enables round-the-clock digital payments.
• Uses two-factor authentication and end-to-end encryption to enhance transaction security.

Over the past decade, UPI has evolved into the backbone of India's digital payments ecosystem. Following are some of the key milestones in the evolution of UPI:

2016

• UPI was launched on a pilot basis in April 2016 with 21 member banks.
• In August 2016, it was rolled out to the public as participating banks made their UPI-enabled mobile applications available on the Google Play Store.
• The BHIM application was launched in December 2016 to enable digital payments using UPI. It allows users to make direct bank-to-bank transactions through mobile devices.

2017

• Dynamic QR, a retail merchant platform enabling UPI payments via dynamic QR codes was launched, which dynamically included transaction specifics like payee info and exact totals, removing manual amount entry.
• 2018
  • UPI 2.0 was introduced with enhanced features to make digital payments simpler, more secure and seamless.
  • Invoice in the Inbox allows users to view bills or invoices before authorising payments.
  • Signed Intent and QR enables simplifies payment authorisation while maintaining security.
  • UPI Mandates enables recurring payments through pre-authorised instructions.
  • Overdraft account linking allows users to make UPI transactions using their overdraft accounts.

• 2019

  • SEBI allowed retail individual investors to use UPI as an alternative payment mechanism when applying for IPOs through designated intermediaries.
  • UPI crossed the milestone of one billion transactions in a month in October 2019, reflecting rapid nationwide adoption.

• 2020-2022

  • UPI AutoPay was launched to support recurring e-mandates for subscriptions, utility bills, insurance premiums, SIPs and EMIs.
  • Feature phone users were brought into the digital payments’ ecosystem through the launch of UPI 123PAY.  It allows transactions through interactive voice response (IVR) number, app-based functionality, missed calls-based approach and proximity sound-based payments.
  • UPI Lite was introduced to enable low-value transactions in a faster and PIN-less manner.   
  • The integration of credit cards with UPI further expanded digital payment options for users.
  • During FY 2021-22, UPI processed transactions worth over US$1 trillion and crossed 5 billion monthly transactions in March 2022.
  • It also expanded internationally with its launch in Bhutan, marking its first cross-border deployment.

• 2023

  • Credit Line on UPI was introduced, allowing pre-sanctioned bank credit lines to be linked as a funding account.
  • UPI accounted for ~70% of India's digital payment transactions during FY 2023–24.

2024

• UPI Circle was introduced, enabling primary users to authorise secondary users with predefined transaction limits on the primary user’s bank account.
• RBI enhanced the UPI transaction limit for tax payments from Rs1 lakh to Rs5 lakh per transaction. Higher limits also apply to select categories, including capital markets, IPO subscriptions, loan collections, insurance, healthcare and education.
• The per-transaction limit for UPI 123Pay was raised to Rs10,000, expanding its range of use cases.
• The UPI Lite wallet limit was increased to Rs5,000, with the per-transaction limit raised to Rs1,000.

2025

• On-device authentication for UPI was introduced, enabling payments through smartphone fingerprint or face unlock.
• Aadhaar-based Face Authentication simplified UPI PIN onboarding, especially for first-time users, senior citizens and those without easy access to cards.

UPI Today

UPI has witnessed unprecedented growth in both transaction volume and value, reflecting its widespread adoption by individuals, businesses and financial institutions.

From FY 2016-17 to FY 2025-26:

• Annual transaction volume increased from 2 crore transactions to over 24,162 crore transactions. It represents ~12,000-fold increase.
• Annual transaction value grew from Rs0.07 lakh crore to Rs314 lakh crore, recording more than 4,000-fold increase.

UPI has transformed the scale and reach of digital payments in India. In July 2026:

• The UPI ecosystem comprises 741 live banks, reflecting its widespread adoption across India's banking sector.
• UPI processed 2,365.8 crore transactions; and
• Total transaction value stood at Rs29.87 lakh crore.

UPI's Global Footprint

UPI has emerged as a leading real-time payment system globally. As of 2024, UPI accounted for 49% of global real-time payment transaction volume. This achievement was highlighted by the International Monetary Fund (IMF) in its “Growing Retail Digital Payments: The Value of Interoperability” report, published in June 2025.

VI.  The Road Ahead, UPI's Next Decade

The next decade of UPI is poised to drive even greater transformation in India’s digital payments landscape.  By bringing new users and merchants to the UPI Ecosystem, Government of India remains committed to enabling the next phase of UPI-led innovation and strengthening India’s digital payments ecosystem through continued policy support, technological advancement, and greater financial inclusion.