In September, NPCI reported UPI transactions rose 31% in count and 21% in value to ₹24.90 lakh crore, boosting total digital payments to ₹18.8 lakh crore
NEW DELHI
India’s festive cheer has translated into a strong surge in digital transactions, driven by the twin effects of GST reforms and the festive season. A report from Bank of Baroda revealed that spending through the Unified Payments Interface (UPI) during the Dussehra-to-Diwali period touched ₹17.8 lakh crore, a sharp rise from ₹15.1 lakh crore last year.
According to the National Payments Corporation of India (NPCI), UPI transactions rose 31 per cent in count and 21 per cent in value year-on-year in September, reaching 19.63 billion transactions worth ₹24.90 lakh crore. Payments through debit and credit cards also saw a boost, taking the total digital transaction value during the festival period to around ₹18.8 lakh crore, up from ₹16.4 lakh crore last year.
The government’s GST 2.0 initiative has played a vital role in stimulating private consumption. The Bank of Baroda report noted that the GST cut could raise consumer spending by nearly ₹20 lakh crore, further boosting the economy.
During this period, average UPI spending stood at ₹1,052 per transaction. Debit cards recorded an average spend of ₹8,084, while credit card transactions averaged ₹1,932. Merchant-level data showed notable increases in spending on clothing, electronics, liquor, beauty services, and online shopping.
Experts believe the rise in digital payments reflects a renewed consumer confidence. Bank of Baroda expects strong private consumption growth in the coming quarters, suggesting that India’s spending momentum will remain upbeat through the festive and winter months.
