Archive · 31 Oct 2025
UPI Payments Surge During Festive Season, Boosted by GST Reforms
Imagine India has a special shopping season around the holidays like Dussehra and Diwali.
During this time, people love to buy gifts and things for their homes.
This year, the way people pay for things using something called UPI became much more popular.
People spent over 17 lakh crore rupees using UPI, which is a lot more than last year.
This big spending happened partly because the government made some changes to taxes (called GST reforms) that made shopping cheaper.
Because people are buying more, especially clothes, electronics, and even drinks, it means the economy is getting a boost.
While UPI is used for smaller buys, other cards like debit cards were also used for much bigger purchases.
This shows that people are feeling more confident to spend money, which is good for the country's businesses.
UPI payments reached Rs 17.8 lakh crore during the Dussehra to Diwali festive period, an increase from Rs 15.1 lakh crore in the previous year.
UPI transaction volumes grew by 31% year-on-year to 19.63 billion in September, with transaction amounts increasing by 21%.
The total value of payments across UPI, debit, and credit cards during the festive period was approximately Rs 18.8 lakh crore.
GST reforms are expected to boost household spending by an estimated Rs 20 lakh crore and have coincided with increased digital retail payments.
Average spending per transaction for UPI was Rs 1,052 during the festive period, while debit card transactions averaged Rs 8,084.
- Who
- Consumers and merchants in India
- What
- A significant increase in UPI payment volumes and private consumption, driven by GST reforms and the festive season.
- When
- Dussehra to Diwali period, with September data also cited.
- Where
- India
- Why
- GST reforms are stimulating consumer spending, and the festive season naturally leads to increased purchasing, especially for retail goods and services paid for through digital means like UPI.
- UPI Spending (Dussehra to Diwali)
- Rs 17.8 lakh crore
- UPI Spending (Previous Year Festive Period)
- Rs 15.1 lakh crore
- UPI Transaction Count Growth (YoY September)
- 31%
- UPI Transaction Amount Growth (YoY September)
- 21%
- Total Value of UPI, Debit, Credit Card Payments (Festive Period)
- Rs 18.8 lakh crore
- Total Value of UPI, Debit, Credit Card Payments (Previous Year Festive Period)
- Rs 16.4 lakh crore
- Debit Card Payments Value (Festive Month)
- Rs 65,395 crore
- Average UPI Transaction Value (Festive Period)
- Rs 1,052
Sources
Micro Merchant Adoption Sees UPI QR Terminals Double In Five Months
UPI tops festive season payments, transactions jump to ₹17.8 lakh crore: Bank of Baroda
UPI Tops Festive Season Payments, Transactions Jump To Rs 17.8 Lakh Crore: Bank of Baroda
UPI accounts for 85% of India's payment volumes