UPI Transaction Value Exceeds Rs 20 Lakh Crore for Third Month

In July, UPI (Unified Payments Interface) transaction values exceeded Rs 20 lakh crore for the third straight month, according to data released by the National Payments Corporation of India (NPCI) on August 1. The total transaction value reached Rs 20.64 lakh crore, up from Rs 20.07 lakh crore in June. The average daily transaction volume also increased to 465 million from 463 million, though the average daily transaction value declined slightly to Rs 66,590 crore from Rs 66,903 crore in the previous month.

Growth Metrics

Year-on-Year Growth: UPI transactions saw a 45% year-on-year increase in volume, reaching 14.44 billion transactions in July. The value of these transactions grew by 35% year-on-year, totaling Rs 20.64 trillion.

Monthly Growth: Sequentially, UPI transaction volume rose by 3.95% in July, while the value increased by 2.84%.

Other Payment Systems

Aadhaar-enabled Payment System (AePS): AePS transactions declined with volumes falling to 97 million from over 100 million in June. The average transaction size also decreased to Rs 781 crore daily.

FASTag: FASTag volumes continued to decline for the second consecutive month, with average daily transactions falling to 10.41 million from 11.15 million. However, they were still 9% higher in volume and 12% higher in value compared to the previous year.

IMPS (Immediate Payment Service): IMPS experienced a second consecutive month of declining daily volumes, reducing to 16 million in July from 17 million in June. The transaction value slightly decreased to Rs 19,135 crore from Rs 19,260 crore in the previous month.

Financial Year Performance

In FY25, UPI recorded 55.66 billion transactions worth Rs 80.79 trillion. For FY24, UPI surpassed 100 billion transactions for the first time, ending the year at 131 billion, compared to 84 billion in FY23.

Reserve Bank of India (RBI) Insights

The RBI’s recent report highlighted a tenfold increase in UPI transaction volume over the past four years, from 12.5 billion in 2019-20 to 131 billion in 2023-24. The UPI now accounts for 80% of all digital payment volumes. The report also noted that UPI transactions for peer-to-merchant (P2M) transactions have surpassed those for peer-to-peer (P2P) transactions, indicating high usage for small-value transaction categories.