Summary of this article
October daily UPI average value crossed Rs 1 lakh crore milestone.
Monthly transactions rose to 25.47 billion, totaling Rs 31.53 lakh crore.
Proposed merchant discount rate fee for transactions above Rs 2,000 deferred.
Unified Payments Interface (UPI) transactions continued to grow in October 2026 with the average daily transaction value crossing the Rs 1 lakh crore mark for the first time. The month also saw increased festive activity, ahead of Diwali in November.
UPI Transactions And Value Rise In October
UPI recorded 25.47 billion transactions in October, registering a 23 per cent increase from the corresponding month last year. The total transaction value stood at Rs 31.53 lakh crore, up 16 per cent annually.
The average daily transaction count rose to 822 million in October, as against 802 million in September. The average daily transaction value also increased to Rs 1,01,707 crore from Rs 97,913 crore in the previous month. This marked the first time that the average daily value of UPI transactions crossed Rs 1 lakh crore.
October also recorded the highest monthly UPI transaction value by crossing Rs 30 lakh crore for the first time. The previous highest was Rs 29.90 lakh crore in May 2026.
The increase in UPI transactions comes as the National Payments Corporation of India (NPCI) has also deferred the proposed introduction of the merchant discount rate (MDR) on select UPI payments. This was initially scheduled to take effect from October 15, but will now be implemented after Diwali, with the revised date yet to be announced.
Under the proposed framework, eligible person-to-merchant (P2M) transactions above Rs 2,000 will attract an MDR of 0.40 per cent, capped at Rs 300. MDR is a fee paid by merchants to banks or payment service providers for processing digital payments. Person-to-person (P2P) transfers will remain outside the proposed levy.
According to the Union Ministry of Finance, around 96 per cent of merchant transactions will remain unaffected by the proposed MDR, as payments up to Rs 2,000 and those received by eligible small merchants will continue to be exempt.
How UPI Transactions Performed In Previous Months
In September 2026, UPI recorded 24.07 billion transactions worth Rs 29.37 lakh crore. This was lower than August, when the platform processed 24.51 billion transactions with a total value of Rs 29.82 lakh crore.
In comparison with September, October recorded an increase of 1.40 billion transactions. The total transaction value rose by Rs 2.16 lakh crore during the same period which reflects an increase in both the volume and value of UPI payments.
