PM Modi Hails a Decade of UPI as a Landmark in India’s Digital Payments Journey

Prime Minister Narendra Modi on Tuesday described the Unified Payments Interface as a major turning point in India’s digital payments journey as the platform completed ten years since its public launch. In a post on X, he underlined the extraordinary scale and reach achieved by UPI and invited citizens to share how the system has shaped their daily lives.

“A decade ago, UPI was rolled out, marking a major turning point in India’s digital payments journey. The sheer scale and reach of UPI are something every Indian must be proud of. Tell me about your UPI experience and how it impacted your life,” the Prime Minister wrote.

Prime Minister Narendra Modi | Photo Credit: ANI | The Hindu BusinessLine

The Beginning of a Payments Revolution

UPI was developed by the National Payments Corporation of India under the regulatory oversight of the Reserve Bank of India. A pilot was conducted in April 2016 with 21 member banks. The system was opened to the public on August 25, 2016, when participating banks released their UPI-enabled mobile applications. The BHIM application followed in December of the same year. In its first month of operations the platform processed only 90,000 transactions.

Over the next ten years UPI evolved into the backbone of India’s digital payments ecosystem. It allows users to link multiple bank accounts through a single mobile application, enabling real-time fund transfers and merchant payments on one interoperable platform. Two-factor authentication and end-to-end encryption provide strong security while keeping the experience simple and accessible.

Remarkable Growth in Scale and Reach

According to data released by the Union Finance Ministry and the National Payments Corporation of India, annual transaction volume rose from 1.78 crore in the financial year 2016-17 to more than 24,162 crore in 2025-26. This represents an almost 13,000-fold increase and a compound annual growth rate of 188 per cent. Transaction value expanded from ₹0.07 lakh crore to approximately ₹314 lakh crore over the same period, a more than 4,000-fold rise at a compound annual growth rate of 155 per cent.

In 2026 the platform continued to set new benchmarks. Monthly transaction volumes crossed the 2,300-crore mark for the first time in May, reaching 2,320 crore. July recorded an all-time high of 2,366 crore transactions valued at ₹29.88 lakh crore. The daily average now stands at around 66 crore transactions. UPI accounted for 84 per cent of India’s digital payments in the financial year 2025-26. The International Monetary Fund has recognised it as the world’s largest real-time payment system by transaction volume, noting that it processed nearly 49 per cent of global real-time payment volume in 2025.

The number of banks live on the network has grown from 21 at launch to 741 as of July 2026. Person-to-merchant payments form a substantial share of overall volume, reflecting the deep penetration of UPI into everyday retail transactions, including small-value purchases.

Expanding International Footprint

UPI is now operational in 11 countries: the United Arab Emirates, France, Bhutan, Sri Lanka, Nepal, Singapore, Mauritius, Qatar, Cambodia, Greece and the Maldives. Greece and the Maldives are among the most recent additions. This growing international presence supports cross-border payments and remittances and positions the platform as a significant Indian contribution to global real-time payment infrastructure.

Alongside the platform’s expansion, the government amended the Payment and Settlement Systems Act to introduce merchant discount rate charges for merchants while ensuring that consumers continue to make payments without any charges.

The MGMM Outlook 

UPI’s journey over the past decade represents one of the most significant transformations in India’s digital economy. From processing just a small number of transactions in its early days to handling billions of payments every month, UPI has made instant digital transactions a part of everyday life for millions of Indians. Its simple, interoperable and widely accessible system has particularly strengthened digital payments for small merchants, businesses and ordinary consumers, while reducing dependence on cash.

The platform’s growing international presence further highlights India’s success in building digital public infrastructure with global relevance. With UPI now operational across several countries and continuing to reach new milestones in transaction volume, it has emerged as an important example of India’s technological capabilities. As UPI enters its second decade, its continued expansion, innovation and international adoption can further strengthen India’s position as a leader in real-time digital payments and contribute to a more connected global payment ecosystem.

(Sources: The HinduBusinessLine, Business Today, The New Indian Express)