GS3 · Digital payments

UPI completes 10 years: 24,162 crore transactions in FY26

Battle IAS current affairs title card: UPI completes 10 years: 24,162 crore transactions in FY26 (GS3 · Digital payments, 30 April 2026)
Asked by UPSCPrelims 20172 PYQs

UPSC has already asked about this. Read the story with these questions in mind.

Battle Brief

UPI, launched by NPCI on 11 April 2016 under RBI oversight, completed ten years in 2026. In FY 2025-26 it handled about 24,162 crore transactions worth about ₹314 lakh crore, up from 2 crore in FY 2016-17. It has 703 banks, carries 85% of India’s digital payments and about 49% of the world’s real-time payment volume.

Fact File

Launched
11 April 2016, by NPCI, under RBI oversight
FY26 volume
24,162 crore transactions (2 crore in FY17)
FY26 value
₹314 lakh crore (₹0.07 lakh crore in FY17)
Banks live
703 (21 at launch)
Daily average
66 crore transactions; ₹0.86 lakh crore
Share
85% of India’s digital payments; 49% of world real-time volume
Abroad
Accepted in 8 countries
In the news

UPI at ten years: what happened?

Ten years ago, paying a shopkeeper from your phone in seconds was rare. Today a tea stall takes UPI. The IMF calls UPI the world’s largest real-time payment system by volume. This is a model of digital public infrastructure that India now shows to the world.

  • Volume grew almost 12,000-fold and value more than 4,000-fold over the decade.
  • YoY growth in 2025-26: volume 30.0%, value 20.59%.
  • Monthly volume first crossed 2,000 crore in August 2025 (2,001 crore).
  • Record month: March 2026, 2264 crore transactions worth ₹29.53 lakh crore.
  • Banks include public, private, small finance, payments and cooperative banks; each acts as remitter and/or beneficiary PSP.
Back Story

Who runs UPI?

  • The National Payments Corporation of India (NPCI) runs it, under the regulatory oversight of the Reserve Bank of India.
Back Story

Where is UPI accepted abroad?

  • UAE, Singapore (linked with PayNow), France, Bhutan, Nepal, Sri Lanka, Mauritius and Qatar.
By the numbers

How do P2M and P2P payments differ?

UPI transaction mix (PIB, April 2026)
TypeShareTicket size
Person-to-merchant (P2M)63% of volume86% below ₹500
Person-to-person (P2P)71% of value59% below ₹500; 41% above ₹500
Why examiners care

Why does UPI at ten years matter?

AngleWhat to note
EconomicCheap, instant payments cut cash use and bring small shops into the formal system.
Financial inclusionHundreds of banks, including cooperative banks, connect people to digital money.
GlobalUPI links abroad give Indian tourists and the diaspora easy payments.
GovernanceShows how public digital rails can be built for scale.
Fault Lines

What are the challenges in UPI at ten years?

  • Most P2M payments are tiny (86% below ₹500), so the system must stay cheap and fast at massive scale.
  • Heavy daily load (66 crore transactions) needs very high reliability.
  • Growth in value (20.59%) is slower than in volume (30.0%), as more small payments come in.
Road Ahead

What should be done next on UPI at ten years?

  • Bring new users and merchants onto UPI.
  • Expand acceptance abroad.
Exam Radar

What can Prelims ask on UPI at ten years?

  • UPI: launched 11 April 2016 by NPCI; RBI oversight.
  • FY26: 24,162 crore transactions, ₹314 lakh crore.
  • 703 banks live (March 2026).
  • IMF: UPI is the world’s largest real-time payment system by volume.
  • Singapore’s PayNow is linked with UPI.
Answer Lab

How to write about UPI at ten years in Mains

Practice question (10 marks, 150 words): UPI has made India a global leader in real-time payments. Discuss its role in financial inclusion and the challenges in sustaining it.

  • Intro: launch and scale.
  • Inclusion: small merchants, banks, P2M micro-payments.
  • Global reach and DPI model.
  • Challenges: cost, reliability.
  • Conclusion.

How to use this in Mains

GS-III Indian economy: mobilisation of resources, banking and inclusive growth

  1. As per PIB (2026-04-30): UPI transactions grew from a few crore in FY 2016-17 to over 24,162 crore in FY 2025-26, with value above ₹314 lakh crore; over 700 banks are onboarded; monthly volume first crossed 2,000 crore in August 2025.
  2. DPI model exported abroad; concentration and fraud risks remain.
Quotable data point

UPI transactions grew from a few crore in FY 2016-17 to over 24,162 crore in FY 2025-26, with value above ₹314 lakh crore.

PIB: Finance: UPI 10 years, 30 Apr 2026

Exam angle

UPSC

Prelims: NPCI, UPI facts.

Practice MCQs

Original practice questions (not PYQs).

Practice · UPSC

With reference to UPI, consider the following statements:
1. It is operated by the Reserve Bank of India directly.
2. Person-to-merchant transactions form the larger share of UPI volume.
3. Person-to-person transactions form the larger share of UPI value.
Which of the statements given above are correct?

Answer (b) & explanation

PIB, 30 April 2026: NPCI runs UPI under RBI oversight; P2M is 63% of volume; P2P is 71% of value.

Practice · UPSC

UPI is linked with which country's PayNow system for cross-border transfers?

Answer (b) & explanation

PIB, 30 April 2026.

Quick questions

Questions students ask about this

When was UPI launched and by whom?

On 11 April 2016, by the National Payments Corporation of India, under RBI oversight.

How many UPI transactions happened in FY 2025-26?

About 24,162 crore transactions worth about ₹314 lakh crore.

What share of global real-time payments does UPI have?

About 49% of the world's real-time payment transaction volume, as cited by the IMF.

In how many countries is UPI accepted?

Eight: UAE, Singapore, France, Bhutan, Nepal, Sri Lanka, Mauritius and Qatar.

Keep studying

Go deeper

Official source: PIB: Finance: UPI 10 years, 30 Apr 2026

facts from cited sources only; faculty review pending