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UPI Hits Record ₹1.02 Lakh Crore Transactions on Diwali Day
UPI on Diwali: The use of digital means for financial transactions is on the rise in India. According to Union Finance Minister Nirmala Sitharaman, shopping has increased this Diwali following the reduction in GST rates. According to a report, a record ₹1.02 lakh crore worth of transactions were made through UPI in a single day.
A record ₹1.02 lakh crore worth of transactions were made through the Unified Payments Interface (UPI) on October 18 due to Diwali and the festive season. Finance Minister Nirmala Sitharaman said that a total of 75.4 crore transactions were made on this day. Furthermore, consumer demand has seen a sharp increase during the festive season following the reduction in GST rates.
The average number of UPI transactions increased to 73.69 crore over the three days between Dhanteras and Diwali. This exceeds the 647.4 million reported in the same period last month. The Finance Minister said that this year, retail businesses have had a cracker Diwali, as the reduction in GST rates has increased the purchasing power of middle-class consumers. The implementation of GST 2.0 has given a new impetus to the country's economy, facilitating ease of doing business. The reduction in rates has benefited families from real savings and increased market demand.
The Indian payment system has seen significant growth in recent years. In the first six months of 2025, the share of digital payments in total transactions has reached 99.8%. In five years, digital payments in India have increased by 6.6 times in number and 1.6 times in value. This represents a five-year compounded growth rate of 46% in terms of quantity.
During calendar year 2024, digital payment transactions in the payment system in India reached 99.7% by volume and 97.5% by value. This growth continued in the first half of 2025. During this period, digital payments accounted for 99.8 percent of total transactions by number and 97.7 percent by amount.
According to the RBI report released on Thursday, all types of payment systems in the country have grown rapidly in recent years, except paper-based instruments. Cheques constitute only 2.3 percent of total transactions by value.
A total of 3,248 crore payments were made in 2019, which increased to 20,849 crore by 2024. The total payment amount increased from Rs 1,775 lakh crore to Rs 2,830 lakh crore. In the half year ending June 2025, there were 12,549 crore transactions worth Rs 1,572 lakh crore.
