UPI transactions surge 32% on Diwali as Indians rush festival shopping

India's digital payments infrastructure handled a substantial spike in transaction volumes during Diwali, with UPI processing 916.9 million transactions on November 8, up 32 per cent from 695.7 million transactions on the same date last year, according to data released by the National Payments Corporation of India (NPCI).

In rupee terms, the value of UPI transactions climbed to Rs 90,029.43 crore on Diwali, compared with Rs 88,350.79 crore in the corresponding period last year. The surge reflects Indians' preference for digital payment methods during the festive shopping season, with consumers utilising the instant payment system for everything from clothing and jewellery to gifts and household purchases.

Transaction activity remained robust the day before Diwali as well, with volumes reaching 975.8 million and transferring a combined value of Rs 1,36,118 crore. This pattern highlights how festival-driven consumer spending extends beyond the main celebration day, with merchants and shoppers frontloading purchases to manage logistics and inventory constraints.

The October performance further underscores the festive season's impact on digital payments. UPI processed 25.47 billion transactions valued at Rs 31.53 lakh crore throughout the month, benefiting from sustained festival shopping momentum. NPCI, which operates India's retail payment and settlement systems under the Reserve Bank of India and Indian Banks' Association, continues to record record-breaking volumes as digital payments become increasingly embedded in consumer behaviour.