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UPI reaches 55.49 crore users by June 2026; transaction volume and value surge

UPSC / SSC current affairs note · Economy

EconomyGovernment Policies & Interventions

Why in news

The Ministry of Finance informed the Lok Sabha that UPI had 55.49 crore registered users by June 2026. The transaction volume for FY 2025-26 reached 24,162 crore, with a value of ₹314 lakh crore, reflecting rapid growth in digital payments.

Background

Unified Payments Interface (UPI) is a real-time payment system operated by the National Payments Corporation of India (NPCI), authorized under the Payment and Settlement Systems Act, 2007. It has seen exponential growth since its launch, transforming digital payments in India.

Key facts

in5points

  1. UPI had approximately 55.49 crore registered users by June 2026.

  2. FY 2025-26 UPI transaction volume: 24,161.69 crore; value: ₹314.23 lakh crore.

  3. UPI transaction volume grew from 4,595.61 crore (FY 2021-22) to 24,161.69 crore (FY 2025-26).

  4. UPI transaction value grew from ₹84.16 lakh crore (FY 2021-22) to ₹314.23 lakh crore (FY 2025-26).

  5. NPCI International Payments Limited (NIPL) was established in April 2020 to expand UPI and RuPay globally.

  6. Risk-based transaction limits and enhanced security requirements have been implemented to prevent fraud.

  7. Comprehensive UPI Information Security Framework (CUISF) 2025 and Mobile Application Security Framework have been released.

  8. UPI is linked with payment systems of Bhutan, Singapore, UAE, France, Mauritius, Sri Lanka, Nepal, Qatar, Greece, and Cambodia.

  9. UPI enables Person-to-Person (P2P) remittances and Person-to-Merchant (P2M) transactions across borders.

Prelims pointers

  • UPI: Unified Payments Interface
  • NPCI: National Payments Corporation of India
  • NIPL: NPCI International Payments Limited
  • Payment and Settlement Systems Act, 2007
  • CUISF: Comprehensive UPI Information Security Framework
  • Partner countries: Bhutan, Singapore, UAE, France, Mauritius, Sri Lanka, Nepal, Qatar, Greece, Cambodia
  • P2P: Person-to-Person; P2M: Person-to-Merchant

Mains angles

  • Discuss the growth of UPI and its impact on India's digital economy and financial inclusion.
  • Examine the measures taken by the government, RBI, and NPCI to enhance UPI security and prevent fraud.
  • Analyze the international expansion of UPI through NIPL and its implications for India's soft power and cross-border payments.