Summary of this article
UPI transactions reached a record Rs 29.88 lakh crore in July.
Transaction value rose 19 per cent year-on-year in July.
Possible MDR charges could affect large merchant UPI payments.
Transactions made through the Unified Payments Interface (UPI) reached a record Rs 29.88 lakh crore in July 2026, according to data released by the National Payments Corporation of India (NPCI).
Transaction Value Rises 19 Per Cent
The value of UPI transactions made in July 2026 rose 19 per cent year-on-year from Rs 25.08 lakh crore recorded in July 2025.
In volume terms, as many as 23.66 billion transactions were processed through UPI in July. The volume was significantly higher than the 23.2 billion transactions recorded in May, and 22.72 billion in June.
In May, the value of transactions processed through UPI stood at Rs 29.9 lakh crore. Data for the month of July, shows that the value of transactions crossed Rs 29 lakh crore for the second month in the year.
The data showed that UPI handled a higher number of transactions in July compared to the previous two months. In May, the platform processed 23.2 billion transactions, while the figure stood at 22.72 billion in June before rising to 23.66 billion in July.
UPI is used for many types of digital payments. These include sending money from one bank account to another, paying merchants and making purchases through QR codes and other payment methods supported by banks and payment applications.
Payment System Expands Beyond India
UPI has also moved into international markets, with the payment system available in around 10 countries. These include Bhutan, Singapore, the UAE, France, Mauritius, Sri Lanka, Nepal, Qatar, Greece and Cambodia.
The services available through UPI differ from one country to another, depending on the arrangements between payment networks and financial institutions. In some markets, the system is used to facilitate payments by Indian travellers, while other arrangements focus on cross-border transactions.
Notably, the international presence of UPI has also brought the Indian payment system into discussions around cross-border digital payments and remittances. India and the Maldives have launched the Favara-UPI cross-border payment corridor, allowing users in the Maldives to send real-time person-to-person transfers to UPI-enabled bank accounts in India through mobile banking applications.
NPCI operates UPI as part of India's retail payments infrastructure. It was established as an initiative of the Reserve Bank of India (RBI) and the Indian Banks' Association (IBA).
The July data also shows that the total value of transactions remained close to the Rs 30 lakh crore mark.
A recent news report by the Economic Times has stated that the government is considering an MDR of 5-7 basis points, or 0.05-0.07 per cent, for large merchants with annual turnover of around Rs 1-1.5 crore or more, raising questions over whether charges could eventually be introduced for usual, non-merchant UPI transactions. But, at present there is no official confirmation that UPI payments will remain free for users forever. However, the government currently provides incentives to banks and payment service providers to support low-value UPI transactions.
