India’s Unified Payments Interface (UPI) recorded a marginal month-on-month (MoM) decline of 2.2% in April 2025, with 17.89 billion transactions processed, down from an all-time high of 18.30 billion in March. According to the National Payments Corporation of India (NPCI), these transactions amounted to INR 23.95 Lakh Crore, also marking a 3.3% drop in value from the previous month.

📊 Year-On-Year Growth Remains Robust

Despite the dip in April, UPI transactions surged by 34% year-on-year (YoY), reflecting sustained momentum in digital payments adoption across the country. Compared to February 2025, the April transaction count is still 11% higher, indicating strong underlying demand despite temporary disruptions.

⚠️ Outages Impact UPI Volumes

The dip in UPI volumes is primarily attributed to frequent outages experienced by users in April. On April 2, over 500 users reported issues on DownDetector, with NPCI citing “increased latency” in the network. A second major disruption occurred a week later, with more than 2,387 complaints of failed transactions. NPCI acknowledged “intermittent technical issues” affecting transaction completion.

These repeated disruptions prompted NPCI to meet with major banks and third-party UPI apps to address systemic concerns. On April 26, NPCI issued a notice urging PSP and acquiring banks to limit API requests strictly to essential use cases to prevent overloading the UPI system.

📈 Transaction Trends: What the Data Shows

• Total UPI Transactions (April): 17.89 Billion
• Total Value: INR 23.95 Lakh Cr
• Average Daily Transactions: 596 Million (up from 590 Mn in March)
• Average Daily Transaction Value: INR 79,831 Cr (slightly down from INR 79,910 Cr)

🔍 Regulatory and Policy Updates

In a separate development, the Reserve Bank of India (RBI) granted approval to NPCI to revise transaction limits for person-to-merchant (P2M) payments on UPI. However, person-to-person (P2P) transfers will remain capped at INR 1 Lakh.

Meanwhile, NPCI MD Dilip Asbe announced plans to onboard an additional 200-300 million users to the UPI ecosystem, as India continues its digital financial inclusion drive. The finance ministry also clarified that no GST will be levied on UPI transactions above INR 2,000, refuting circulating rumors.

The number of UPI transactions in March reached 18.3 billion, reflecting a 36% growth in volume compared to last year.The average daily transaction value was ₹79,903 crore, up 1.9% from February.

UPI transactions have consistently shown robust growth, with a 41% increase in the financial year ending March 31, 2025.The total transaction value for FY25 was ₹260 lakh crore, marking a 30% increase from the previous fiscal year.

Although UPI transactions fell short of the government’s target of 200 billion transactions for FY25, reaching 185 billion, the platform remains a cornerstone of India’s digital payments ecosystem.The government has approved a ₹1,500 crore subsidy to promote UPI transactions below ₹2,000, aiming to benefit small merchants and consumers.

The rapid adoption of UPI underscores India’s shift towards digital financial solutions. Key factors contributing to this growth include:

• Convenience and Accessibility: UPI’s real-time payment capabilities make it a preferred choice for both peer-to-peer and merchant transactions.
• Government Support: Incentives and subsidies have encouraged widespread adoption, particularly among small businesses.
• Technological Advancements: Continuous improvements in UPI’s infrastructure have enhanced user experience and trust in the system.

The record-breaking UPI transactions in March 2025 highlight the platform’s pivotal role in driving India’s digital payments revolution. As UPI continues to grow, it is expected to play an increasingly vital part in shaping the country’s financial landscape and promoting digital inclusion.

💬 Final Thoughts

April’s slight decline in UPI transactions underscores the need for robust infrastructure as India’s digital payment ecosystem scales rapidly. While outages posed short-term challenges, the continued year-on-year growth and policy support reflect a resilient and expanding platform. With new user onboarding and transaction limit enhancements, UPI remains a cornerstone of India’s fintech revolution.

Want to see how UPI performed in March? Read our full report here.