UPI Transactions Rise 28% to 3.75 Billion During Diwali Weekend

India’s Unified Payments Interface (UPI) recorded 3.75 billion transactions during the four-day Diwali period from November 5 to 8, 2026, an increase of 28% compared with the corresponding festive period last year, according to data from the National Payments Corporation of India (NPCI).

The total value of transactions rose 38% year-on-year to ₹4.99 lakh crore, reflecting increased digital payment activity during the festive shopping period.

For comparison, the corresponding four-day festive period in 2025 was October 17–20, when Diwali fell in October.

November 6, which coincided with Dhanteras, recorded UPI transactions worth ₹1.37 lakh crore, the second-highest daily transaction value reported on the platform. Dhanteras traditionally sees increased purchases of gold, jewellery, vehicles and other goods.

A day later, on November 7, UPI registered a new daily transaction volume record of 975.8 million payments.

The figures indicate increased use of UPI for both routine payments and festive purchases, with transaction value growing faster than transaction volume during the four-day period.

UPI Records 25.47 Billion Transactions

The Diwali weekend growth followed a record month for UPI in October, when the payment network processed 25.47 billion transactions worth ₹31.53 lakh crore.

According to NPCI’s monthly statistics, transaction volume increased 23% year-on-year, while the total value of payments rose 16%.

Compared with September 2026, when UPI processed 24.07 billion transactions worth ₹29.37 lakh crore, October recorded a 5.8% increase in volume and a 7.4% rise in transaction value.

Average daily transaction volume reached approximately 822 million in October, compared with 802 million in September.

The average daily value of UPI transactions also crossed ₹1 lakh crore for the first time, reaching approximately ₹1,01,707 crore.

The increase coincided with Navratri, Durga Puja, Dussehra and festive e-commerce sales, when consumers typically increase spending on retail purchases, travel and other services.

While October’s total benefited partly from having one additional day compared with September, the increase in average daily transactions indicates that payment activity also rose on a daily basis.

NPCI Defers Proposed UPI Merchant Charges Until After Diwali

The increase in festive UPI transactions comes as NPCI prepares to introduce a merchant discount rate (MDR) on select person-to-merchant (P2M) payments.

On October 13, NPCI announced that the implementation of the proposed charge, originally scheduled for October 15, would be deferred until after Diwali. A revised implementation date was to be notified separately.

Under the proposed framework, eligible UPI merchant transactions exceeding ₹2,000 will attract an MDR of 0.4%, capped at ₹300 for payments of ₹75,000 or more.

Certain merchant categories, including railways, telecommunications, insurance, fuel and agricultural inputs, have separate fee arrangements. Person-to-person transfers and eligible merchant payments of ₹2,000 or less remain outside the proposed charge.

MDR is a processing fee paid by merchants to participating banks and payment service providers. It is not a direct charge on all UPI users.

The proposal has drawn concerns from merchant associations over additional payment acceptance costs. NPCI’s decision to defer implementation allowed the festive shopping period to proceed without the new charges.

With UPI processing more than 25 billion transactions in October and recording nearly one billion transactions on a single day in November, the payment network continues to handle a growing volume of India’s retail and digital transactions.

The next development will be NPCI’s announcement of the revised implementation date for the proposed merchant charges.