UPI created a stir! The country is doing transactions worth ₹90,446 crores every day, and SBI became the top remitter in this race

UPI, the most popular medium of digital payment in India, is now at new heights. In August 2025, the average daily transaction reached ₹90,446 crores. SBI became the top remitter, which clearly reflects the 20% growth of UPI.

UPI (Unified Payments Interface), which has become the largest medium of digital payment in India, is constantly touching new and big heights. In August 2025, the average daily transaction value of UPI has reached Rs 90,446 crore, which is much higher than the Rs 75,743 crore recorded in January this year. That is, in the last eight months, there has been a tremendous growth of about 20 percent in UPI transactions.

SBI is on top

According to this report, State Bank of India (SBI) has been the top remitter member with 5.2 billion transactions. This means that the highest number of digital transactions across the country has been done through SBI.

Maharashtra is at the forefront in digital payments

Let us tell you that the report released by SBI Research states that Maharashtra has been at the forefront in terms of digital payments in July 2025. Yes, Maharashtra alone has a share of 9.8 percent. It is followed by Karnataka with a share of 5.5 percent and Uttar Pradesh with a share of 5.3 percent. By the way, these figures show that the trend of digital payments is increasing rapidly in urban and industrial states as well as agricultural states.

Big leap in P2M transactions

The biggest strength of UPI is peer-to-merchant (P2M) transactions. Also, this report states that in June 2020, the share of P2M in the total transaction value was only 13 percent, but by July 2025 it has increased to 29 percent. On the other hand, in terms of quantity, it has increased from 39 percent to 64 percent. It is clear from this that people are not only using UPI to send money to each other, but now the share of UPI has increased significantly in areas like shops, malls, petrol pumps and online shopping.

UPI is replacing cash

By the way, the success of UPI in India can also be gauged from the fact that between April and July 2025, the monthly average UPI transaction was recorded at Rs 24,554 billion, while during the same period the monthly average growth of Cash in Circulation (CIC) was only Rs 193 billion. That is, the use of UPI is increasing many times faster than the demand for cash.

At the same time, the popularity of UPI is far ahead of debit cards and ATM withdrawals. While UPI's share in retail transaction value was 40 percent in November 2019, it increased to 62 percent in January 2021 and 91 percent in May 2025. That is, this figure shows that now people are giving more priority to mobile payments instead of keeping cash.

Expansion of merchant category

At present, there are about 300 merchant category codes (MCC) under UPI. The National Payments Corporation of India (NPCI) started with 29 major MCCs. However, the report says that NPCI should provide detailed data of at least 100 major categories, so that the transaction pattern can be understood better.

In July 2025, the top 15 merchant category accounts contributed 70 percent of the transaction volume and 47 percent of the transaction value. Grocery items were at the forefront of this, with a share of 24.3 percent in transaction volume and 8.8 percent in value. At the same time, the contribution of the debt collection agency category was 12.8 percent in value and 1.3 percent in volume.

Increase in debt collection transactions

According to this report, transactions of the debt collection agency category have increased from Rs 80,789 crore in April 2025 to Rs 93,857 crore in July 2025. However, the ticket size decreased from Rs 5,952 crore to Rs 5,817 crore during this period. This simply means that people are increasing the use of UPI even for small payments.

Digital payments in India

The digital payment landscape in India is changing rapidly and UPI has proved to be the biggest revolution in it. Big banks like SBI and states like Maharashtra, Karnataka, UP are emerging as the leaders of this change. In the times to come, when the scope of the merchant category will increase further, the hold of UPI will become even stronger and the dependence on cash will continue to decrease. (Input: IANS)

5 FAQs

Q1. What was the average daily transaction value of UPI in August 2025?

₹90,446 crore.

Q2. How much has UPI transactions increased compared to January 2025?

Growth of about 20%.

Q3. Which bank is ahead as the top remitter of UPI?

State Bank of India (SBI).

Q4. What is the reason why UPI has become most popular in India?

Being an easy, fast and secure digital payment system.

Q5. What impact is the increasing use of UPI having on the Indian economy?

Increasing digital transactions, decreasing dependence on cash and increasing transparency.