UPI Transactions Surge to 21.63 Billion in December 2025

India’s digital payments ecosystem continues to expand rapidly. In December, transactions through the Unified Payments Interface recorded strong growth in both volume and value. The latest figures underline the growing reliance on cashless payments by individuals and businesses, reinforcing India’s position as a global leader in real-time digital payment systems.

Why in the News?

The National Payments Corporation of India (NPCI) released data showing that UPI transaction volume increased by 29% year-on-year to 21.63 billion transactions in December. Transaction value and daily usage also rose significantly, reflecting sustained growth in digital payment adoption across the country.

Key Growth Highlights in December

• UPI transactions reached 21.63 billion, showing a sharp annual rise of 29%.
• The value of transactions increased by 20% year on year, reaching nearly ₹28 lakh crore.
• On a monthly basis as well, both volume and value showed healthy growth, indicating consistent user engagement rather than one-time spikes.

Daily Transaction Trends

• The average daily transaction value in December stood at around ₹90,217 crore, higher than ₹87,721 crore in November 2025.
• Similarly, the average daily transaction count increased to 698 million, compared to 682 million in the previous month.
• These figures highlight UPI’s role in handling high-frequency, everyday payments at scale.

IMPS Performance Alongside UPI

• Along with UPI, the Immediate Payment Service (IMPS) also recorded growth.
• IMPS transactions amounted to ₹6.62 lakh crore in December, marking a 10% annual increase.
• Transaction volume rose to 380 million, up from 369 million in November, showing steady demand for instant bank transfers.

Significance of the Growth

• The continued rise in UPI and IMPS usage reflects deepening digital adoption across urban and rural India.
• It supports government goals of a less-cash economy, improves transaction transparency, and reduces dependence on physical cash.
• For businesses, faster settlements and lower transaction costs enhance efficiency and economic activity.

What is UPI?

• The Unified Payments Interface (UPI) is a real time payment system that allows instant money transfers between bank accounts using mobile phones.
• Developed by NPCI, UPI enables peer to peer and merchant transactions with ease, low cost, and high security.
• It has become the backbone of India’s digital economy and financial inclusion efforts.

Key Summary At Glance

Question

Q. Alongside UPI, which instant payment system also showed growth in December?

A) RTGS
B) NEFT
C) IMPS
D) BHIM