UPI Hits Record Rs 96,000 Crore Daily Transactions This Diwali: What’s Driving the Surge
UPI transactions in India hit a record Rs 96,000 crore daily in October 2025, driven by Diwali spending and GST 2.0 reforms. Daily volumes peaked at 74 crore, marking a historic surge in digital payments.
UPI Records Rs 96,000 Crore Daily Transactions This Diwali | October 2025 Payment Surge
The month of October has set a precedent for the digital payment scenario in India as the Unified Payments Interface (UPI) transactions have reached new heights. The data presented by the National Payments Corporation of India (NPCI) indicates that the average value of daily transactions has exceeded Rs 96,000 crore as of Wednesday, October 22 — a 16% increase from September.
In addition to this increase in value, the daily transaction volume has also risen, with an average of 68 crore payments per day, up from 65.4 crore in September. These numbers are a clear indication of UPI’s ongoing leadership in the digital payments domain of India, delivering approximately 85% of all digital transactions in the country.
Festive Season Drives Payment Spike
The festival of Diwali, which is a major season for consumer spending, has also played a large part in the increase of UPI activity this year. During the entire month, daily transaction values touched the Rs 1 lakh crore mark on six occasions, thus surpassing the three instances in the previous month. New peaks were also seen in terms of transaction volumes where the number of payments reached 74 crore on the day prior to Diwali, thus giving us an idea of how digital payment trends are being driven by festivals and related shopping.
GST 2.0 Fuels Consumer Spending
The rollout of GST 2.0 has been a significant contributor to the UPI growth. The new system, which took the 12% and 28% tax brackets out of the picture and replaced them with 5% and 18% slabs, was introduced on September 22. The transition was quick and during the month of October, the consumers who had been putting off their purchases waiting for lower tax finally succumbed to the retailer's pleas and increased their spending. This blending of festive mood and tax relaxation has underpinned the UPI transaction spikes.
October 2025 might easily be one of UPI's most active months ever, which still needs to be confirmed by the factors of seasonal consumer patterns and India's increasing dependence on digital payments.
