India's Digital Payments Boom: UPI Transactions Hit Record 16.99 Billion In January, Value Surpasses Rs 23.48 Lakh Crore

In January, the volume of UPI transactions crossed 16.99 billion, while their total value surged past Rs 23.48 lakh crore, setting a new monthly record, the Finance Ministry said on Thursday (27 February), PTI reported.

In a statement, the Finance Ministry stated the digital payments landscape in India has demonstrated remarkable expansion.

According to the ministry, UPI continues to be the cornerstone of India's digital payment ecosystem, accounting for 80 percent of all retail transactions nationwide.

During 2023-24, UPI transaction volume surpassed 131 billion, while the the value exceeded Rs 200 lakh crore.

The ministry attributed UPI’s popularity to its user-friendly interface and the expanding network of banks and fintech platforms, making it the go-to real-time payment method for millions.

As of January 2025, more than 80 UPI apps and 641 banks were live on the UPI ecosystem, the statement noted.

For FY 2024-25, up until January 2025, people to merchant (P2M) transactions accounted for 62.35 percent of total UPI transactions, while people to people (P2P) transactions made up 37.65 percent, according to the ministry.

The contribution of P2M transactions reached 62.35 per cent in January, 2025 where 86 per cent of these transactions are up to a value of Rs 500, it said, adding, this indicates the trust that UPI enjoys among citizens for making low value payments.

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