By THE NEWSMAN OF INDIA.COM| India’s digital payments ecosystem closed December on a strong note, with the Unified Payments Interface (UPI) once again underlining its position as the backbone of the country’s cashless economy. Data released by the National Payments Corporation of India (NPCI) shows that UPI transactions grew by an impressive 29 per cent year-on-year, reaching a staggering 21.63 billion transactions during the month.

The value of UPI transactions also reflected this momentum, rising 20 per cent annually to nearly ₹28 lakh crore. This sustained expansion highlights not just higher adoption, but also deeper penetration of digital payments across urban and rural India, from small-value retail purchases to large-ticket transactions.

Month-on-month figures further reinforce this trend. December witnessed a notable rise in both transaction volume and value compared to November 2025. The average daily transaction value climbed to ₹90,217 crore, up from ₹87,721 crore in the previous month. Similarly, the average daily transaction count increased to 698 million, compared to 682 million in November. These numbers indicate a steady rise in daily reliance on UPI for routine financial activity.

The growth story was not limited to UPI alone. The Immediate Payment Service (IMPS), another key pillar of India’s real-time payments infrastructure, also recorded healthy gains. IMPS transactions amounted to ₹6.62 lakh crore in December, marking a 10 percent increase on an annual basis and a clear rise from ₹6.15 lakh crore in November.

In terms of volume, IMPS transactions touched 380 million in December, up from 369 million the previous month. The average daily IMPS transaction value rose to ₹21,269 crore from ₹20,506 crore, reflecting consistent usage for instant fund transfers, particularly in segments where IMPS remains the preferred channel.

Together, the strong performance of UPI and IMPS underscores the maturity and resilience of India’s digital payments ecosystem. With rising transaction volumes, higher values, and growing daily usage, December’s figures reaffirm that digital payments are no longer an alternative but the default mode of financial transactions for millions across the country.