{"id":9468,"date":"2025-09-01T06:22:10","date_gmt":"2025-09-01T06:22:10","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/09\/01\/indias-upi-crosses-20-billion-transactions-in-august-value-nears-rs-25-lakh-crore-economy-news\/"},"modified":"2025-09-01T06:22:10","modified_gmt":"2025-09-01T06:22:10","slug":"indias-upi-crosses-20-billion-transactions-in-august-value-nears-rs-25-lakh-crore-economy-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/09\/01\/indias-upi-crosses-20-billion-transactions-in-august-value-nears-rs-25-lakh-crore-economy-news\/","title":{"rendered":"India\u2019s UPI Crosses 20 Billion Transactions In August, Value Nears Rs 25 Lakh Crore | Economy News"},"content":{"rendered":"


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UPI Payments Surge: On a yearly basis, transactions grew 33% from nearly 15 billion in August 2024.<\/h2>\n
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UPI Transactions Surge<\/p>\n<\/figure>\n

The Unified Payments Interface (UPI), India\u2019s flagship digital payments platform operated by the National Payments Corporation of India (NPCI), crossed the 20 billion monthly transaction milestone in August 2025. The platform processed 20.01 billion transactions, up from 19.47 billion in July.<\/p>\n

In terms of value, UPI clocked Rs 24.85 lakh crore in August, slightly lower than the Rs 25.08 lakh crore recorded in July. On a yearly basis, transactions grew 33 per cent from nearly 15 billion in August 2024.<\/p>\n

Daily Milestones and Festive Boost<\/h3>\n

Earlier in the month, UPI crossed the 700 million daily transaction mark for the first time on August 2, and soon after, it processed a record 721 million transactions in a single day.<\/p>\n

Ramakrishnan Ramamurthy, Chief Delivery and Operations Officer \u2013 India, Worldline, noted: \u201cThe beginning of the festive season and increase in consumption reflects in the growth of UPI volumes over July. The penetration of UPI as the primary digital payment option continues to drive sustained overall growth.”<\/p>\n

Government Target of 1 Billion Daily Transactions<\/h3>\n

The Indian government has set an ambitious target of one billion daily UPI transactions, which, at the current growth trajectory, could be achievable by next year.<\/p>\n

Daily usage has more than doubled in two years\u2014from 350 million in August 2023 to around 700 million in August 2025.<\/p>\n

Calls for MDR Gain Momentum<\/h3>\n

UPI\u2019s record growth has reignited the debate around introducing a merchant discount rate (MDR) on merchant transactions. Fintech firms and payment companies have been pressing the government to allow a nominal MDR on large merchants and high-value transactions, arguing it would ensure sustainability.<\/p>\n

While the government slashed its UPI subsidy from Rs 4,500 crore in FY24 to Rs 1,500 crore in FY25, it has not approved MDR. However, the Reserve Bank of India (RBI) has recently expressed support for the demand. In the meantime, banks such as ICICI have reportedly begun charging payment aggregators for processing UPI payments, a trend that may spread further.<\/p>\n

Organic Growth Remains Strong<\/h3>\n

In August, UPI averaged 645 million daily transactions worth about Rs 80,000 crore, crossing the 600 million daily threshold almost every day. Transaction activity tends to peak in the first few days of each month before moderating mid-month.<\/p>\n

UPI now accounts for 85 percent of all retail digital transactions in India, growing at 5\u20137 percent month-on-month and nearly 40 percent annually, fueled by rising internet penetration and merchant adoption.<\/p>\n

UPI\u2019s Global Standing<\/h3>\n

UPI is on track to surpass Visa\u2019s daily transaction volume, potentially becoming the largest retail inter-bank payment settlement platform in the world. Unlike card networks such as Visa and Mastercard, which follow deferred settlement, UPI offers real-time payments, reinforcing its global leadership.<\/p>\n

The platform has grown 15-fold in the past five years. Importantly, merchant transactions now account for 62 percent of UPI\u2019s volume, compared with 40 percent in January 2022, highlighting the shift from peer-to-peer use to merchant-driven adoption.<\/p>\n

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Aparna Deb<\/a><\/p>\n

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More<\/span><\/p>\n<\/div>\n<\/div>\n

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More<\/span><\/p>\n<\/div>\n<\/div>\n

News<\/a> business<\/a> \u00bb economy<\/a> India\u2019s UPI Crosses 20 Billion Transactions In August, Value Nears Rs 25 Lakh Crore<\/span><\/div>\n
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Last Updated:September 01, 2025, 11:47 IST UPI Payments Surge: On a yearly basis, transactions grew 33% from nearly 15 billion in August 2024. UPI Transactions Surge The Unified Payments Interface (UPI), India\u2019s flagship digital payments platform operated by the National Payments Corporation of India (NPCI), crossed the 20 billion monthly transaction milestone in August 2025….<\/p>\n","protected":false},"author":1,"featured_media":4795,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[],"class_list":["post-9468","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/9468","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/comments?post=9468"}],"version-history":[{"count":0,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/9468\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media\/4795"}],"wp:attachment":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media?parent=9468"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/categories?post=9468"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/tags?post=9468"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}