The Unified Payments Interface (UPI), launched on 11 April 2016 by the National Payments Corporation of India (NPCI) under the regulatory oversight of the Reserve Bank of India (RBI), has completed ten years of operations. Over the past decade, UPI has emerged as the backbone of India’s digital payments ecosystem and a key driver of financial inclusion. Annual transaction volume has increased from 2 crore transactions in FY 2016-17 to over 24,161.69 crore transactions in FY 2025-26, while the transaction value has grown from ₹0.07 lakh crore to approximately ₹314 lakh crore during the same period. The International Monetary Fund (IMF) has recognised UPI as the world’s largest real-time payment system by transaction volume.
Expanding Digital Payments, Financial Inclusion & Global Reach
UPI has witnessed unprecedented growth in both institutional participation and user adoption over the last decade. The number of banks live on the platform has increased from 21 at launch to 703 by March 2026, covering public sector, private sector, cooperative, payment and small finance banks. During FY 2025-26, UPI recorded a year-on-year transaction volume growth of 30% and a value growth of 20.59%. The platform now accounts for nearly 85% of India’s digital payment transactions and processes an average of 66 crore transactions daily, with an average daily transaction value of ₹0.86 lakh crore. In March 2026, UPI recorded its highest-ever monthly performance with 2,264 crore transactions worth ₹29.53 lakh crore.
The platform has become the preferred mode for both retail and personal fund transfers. Person-to-Merchant (P2M) transactions account for 63% of total transaction volume, driven largely by small-ticket payments, with 86% of merchant transactions below ₹500. Person-to-Person (P2P) transactions contribute 71% of the total transaction value, reflecting widespread use for higher-value transfers while continuing to support low-value digital payments.
UPI has also expanded its international presence and is currently operational in eight countries, including the United Arab Emirates, Singapore, France, Bhutan, Nepal, Sri Lanka, Mauritius and Qatar. According to the IMF, UPI accounted for nearly 49% of the world’s real-time payment transaction volume in 2025, reinforcing India’s leadership in Digital Public Infrastructure and digital payment innovation.
Going forward, the Government aims to further expand the UPI ecosystem by increasing the participation of users and merchants, while strengthening digital payments through continued policy support, technological innovation and greater financial inclusion.
Key Takeaway: Over the last ten years, UPI has transformed India’s digital payment ecosystem through rapid growth in transaction volume, institutional participation and global acceptance. Its expanding domestic adoption and international presence have established India as a global leader in real-time digital payments and strengthened the country’s Digital Public Infrastructure.
MCQ Questions
MCQ Question 1:
Unified Payments Interface (UPI) was launched by the National Payments Corporation of India (NPCI) in which year?
A. 2014
B. 2015
C. 2016
D. 2017
MCQ Question 2:
Which institution serves as the regulatory authority overseeing UPI operations in India?
A. Ministry of Finance
B. NABARD
C. SEBI
D. Reserve Bank of India