Digital Payments Reach New High
Key Highlights
- UPI recorded a record 23.66 billion transactions in July 2026.
- Transaction value reached ₹29.88 trillion, the highest ever.
- Transaction volume increased 4.1% month-on-month.
- Year-on-year transaction volume surged 22%.
- Growth was driven by everyday digital payments and wider adoption in Tier-2, Tier-3 and rural markets.
- IMPS transactions also registered sequential growth in both volume and value.
India’s digital payments ecosystem achieved another milestone in July 2026 as the Unified Payments Interface (UPI) recorded its highest-ever monthly transaction volume, reflecting the country’s growing reliance on cashless payments.
According to data released by the National Payments Corporation of India (NPCI), UPI processed 23.66 billion transactions worth ₹29.88 trillion during July. Compared with June, transaction volume increased by 4.1%, while transaction value rose 3.3%, setting new monthly records for the platform.
On an annual basis, UPI continued its rapid expansion, with transaction volume rising 22% and transaction value increasing 19% compared with July 2025.
Industry experts attributed the strong growth to increasing everyday usage rather than seasonal factors. Reeju Datta, Co-founder of Cashfree Payments, noted that July lacked any major seasonal tailwinds, indicating that the increase was driven primarily by regular consumer payment behaviour.
The expansion of UPI is also becoming more evident beyond metropolitan cities. Anand Kumar Bajaj, Founder, Managing Director and CEO of PayNearby, said consumers across Tier-2, Tier-3 and rural markets are increasingly using UPI for daily purchases, utility bill payments, mobile recharges and money transfers as digital payment acceptance continues to expand.
Meanwhile, the Immediate Payment Service (IMPS) also reported steady growth during the month. IMPS transaction volume increased to 364 million in July from 354 million in June, while transaction value rose to ₹7.12 trillion from ₹6.77 trillion during the same period.
Although IMPS transaction volume declined 24% compared with July last year, the value of transactions increased 13%, indicating continued demand for high-value instant fund transfers.
The latest figures highlight India’s continued shift towards digital payments, with UPI strengthening its position as the country’s preferred payment platform across both urban and rural markets.
