UPI logged 145 billion transactions in the first half of FY27, a 27% jump over the 114 billion volume recorded in the corresponding period of FY26. The value of those payments climbed 20% to ₹177 lakh crore, matching a steady rise in the digital‑payment ecosystem.
September saw a 1.7% dip in volume, falling to 24.07 billion from 24.5 billion in August, and a 1.5% drop in value to ₹29.37 lakh crore from ₹29.82 lakh crore. The lower monthly figures reflect September’s 30 days versus August’s 31, yet the average daily transactions edged up to 802 million from 791 million.
From 15 October, merchants will face a 0.4% merchant discount rate on UPI payments over ₹2,000. The fee will be split 40% to customers’ banks, 30% to payment gateways, 20% to UPI apps, and 10% to sponsoring banks, with a ₹300 cap on transactions above ₹75,000.
Person‑to‑person transfers remain free, and a flat ₹5 fee covers UPI payments over ₹2,000 in railways, telecom, fuel and insurance. Capital‑market transactions will incur a 0.02% MDR, capped at ₹300. Small merchants collecting up to ₹1 lakh/month via QR codes are exempt, covering roughly 96% of merchant activity. “We’re glad the new rule keeps our daily cashless receipts cost‑free,” says Rani Devi, owner of a 5‑store grocery shop in Jaipur.
Since its launch on 25 August 2016, UPI’s reach has expanded beyond India, now accepted in 11 countries, most recently Uzbekistan. The system’s transaction value has surged from ₹0.07 lakh crore in FY17 to ₹314 lakh crore in FY26, more than a 4,000‑fold increase over a decade.