UPI Daily Transactions Hit ₹90,446 Crore, SBI Tops 5.2 Billion Transfers

18 Aug 2025 , 04:09 PM

UPI transactions have seen significant growth, with the average daily value rising from ₹75,743 crore in January 2025 to ₹90,446 crore in August 2025. SBI emerged as the top remitter, processing 5.2 billion transactions, according to a report released on Monday.

Maharashtra remains the leader in digital payments, accounting for a 9.8% share in July 2025, followed by Karnataka at 5.5% and Uttar Pradesh at 5.3%, as per SBI Research.

The share of peer-to-merchant (P2M) transactions in total value increased from 13% in June 2020 to 29% in July 2025. In terms of volume, it rose from 39% to 64% during the same period, highlighting strong growth in digital payments and financial inclusion.

UPI-led digital payments are expanding much faster than cash in circulation (CIC). The monthly average UPI transaction value stood at ₹24,554 billion, while the monthly average CIC growth was ₹193 billion between April and July 2025.

In retail demand for money (UPI + ATM withdrawals via debit cards), the share of UPI in value grew from 40% in November 2019 to 62% in January 2021, reaching 91% by May 2025, showing a clear shift from cash to digital payments.

Currently, NPCI tracks nearly 300 major merchant category codes (MCCs), though the report recommends providing data for at least 100 major MCCs for better insights.

The top 15 merchant categories accounted for 70% of transaction volume and 47% of transaction value in July 2025. Groceries contributed 24.3% of transaction volume but only 8.8% of the transaction value. Debt collection agencies made up 12.8% of transaction value but just 1.3% of volume. The transaction value for this category rose to ₹93,857 crore in July 2025 from ₹80,789 crore in April 2025, while the average ticket size declined slightly from ₹5,952 to ₹5,817.

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