Prime Minister Narendra Modi has hailed the Unified Payments Interface (UPI) as a major turning point in India's digital payments journey as the country's flagship real-time payment platform completes 10 years.

In a post on X, Modi highlighted the scale and reach of UPI and encouraged citizens to share how the payment system has changed their daily lives.

He said the launch of UPI a decade ago transformed how people in India make payments, adding that its growth and reach are a source of pride for Indians.

UPI Began With 21 Banks

UPI was developed by the National Payments Corporation of India (NPCI) and launched in April 2016 with 21 member banks. The platform was subsequently rolled out to the public on August 25, 2016.

UPI allows users to make instant bank-to-bank and merchant payments through mobile applications. The system operates around the clock and has become a central part of India's digital payments infrastructure.

Over the past decade, UPI has expanded from a relatively small payment network into one of the world's largest real-time payment systems.

UPI Transactions See Massive Growth

UPI transaction volumes have increased dramatically since its launch.

According to the data cited by the government, annual UPI transactions increased from 1.78 crore in FY 2016-17 to 24,162 crore in FY 2025-26.

Transaction value also increased from around ₹0.07 lakh crore to approximately ₹314 lakh crore over the same period.

In July 2026, UPI recorded around 2,365.8 crore transactions worth ₹29.87 lakh crore, marking its highest monthly transaction volume at that point.

The number of banks connected to UPI also increased to 741 as of July 2026.

UPI Drives Financial Inclusion

UPI has played an important role in expanding access to digital payments for individuals, small businesses and merchants.

Its simple mobile-based system allows users to make payments without depending heavily on traditional payment infrastructure. This has helped digital payments reach smaller businesses and everyday consumers across the country.

Low-value retail payments account for a major share of UPI activity. Person-to-merchant payments make up about 63 per cent of transaction volume, while most such transactions are below ₹500.

UPI Expands Beyond Everyday Payments

UPI has continued to evolve since its introduction.

The BHIM app was launched in December 2016, followed by dynamic QR payments in 2017 and UPI 2.0 in 2018.

Other developments have included UPI AutoPay, UPI Lite, UPI 123PAY for feature-phone users, credit-line integration, UPI Circle and on-device authentication.

UPI is now also being used for services such as IPO applications, recurring payments, tax payments and other financial transactions.

Read more: Sitharaman Rebukes CPI(M) MP John Brittas Over UPI Fee Claims in Rajya Sabha

UPI Gains Global Recognition

India's payment system has also expanded internationally.

UPI is now available in or connected with markets including Bhutan, Nepal, Singapore, the UAE, France, Sri Lanka, Mauritius, Qatar, Cambodia, Greece and the Maldives.

The platform has also gained international recognition for its scale and interoperability. Government data said UPI accounted for nearly 49 per cent of global real-time payment transaction volume in 2025.

International expansion has included UPI acceptance and cross-border payment and remittance initiatives in several countries.

Focus on UPI's Next Decade

As UPI enters its second decade, the government plans to focus on bringing more consumers and merchants into the digital payment ecosystem.

Future priorities are expected to include innovation, wider adoption and further strengthening of India's digital public infrastructure.

From 21 banks at its launch to hundreds of connected banks and billions of transactions each month, UPI has become one of the most important elements of India's digital transformation.