The monthly transaction volumes on BHIM Payments App, developed by NPCI BHIM Services (NBSL), have experienced remarkable growth, with volumes more than tripling between June 2025 and May 2026. According to reports from The Economic Times and Business Standard, the monthly transaction volumes increased from 79.64 million in June 2025 to 244 million transactions in May 2026. In May 2026, the platform processed transactions worth ₹26,952 crore, reflecting the growing adoption of digital payments for everyday transactions across the country. As per NPCI BHIM Services Limited, this surge demonstrates the increasing integration of digital payments into daily life, with the app's accessibility in regional languages and low-connectivity areas further boosting its reach.
In Telangana, BHIM's growth reflects the broader national trend with transactions volume growing three times between June 2025 and May 2026. As reported by The Economic Times and Business Standard, groceries accounted for 23.9 percent of merchant transactions on the platform in the state, followed by Food Outlets (18.1 percent) and Quick Commerce (11.6 percent). Other key categories included Dairy and Bakeries (3.2 percent), Fuel Stations (2.8 percent), E-commerce (2.2 percent), and Government Services (2.0 percent), highlighting the increasing role of digital payments in day-to-day spending. Lalitha Nataraj, MD & CEO of NBSL, emphasized that the strong growth reflects the increasing integration of digital payments into everyday life, with growth being driven by transactions across categories such as groceries, food outlets and quick commerce, indicating a growing shift towards digital payments for routine spending.
The growth in digital payments comes as the government enforces new compliance requirements under Section 271DB of the Income Tax Act 1961, which imposes a ₹5,000 per day penalty for businesses above ₹50 crore turnover that fail to offer prescribed e-payment modes including UPI and RuPay debit cards. According to recent regulatory updates, this mandate became effective from February 1, 2020, with the Joint Commissioner of Income Tax serving as the levy authority. The regulation covers all payment channels through which businesses accept money, making it crucial for platforms like BHIM to ensure comprehensive compliance across all merchant touchpoints. As consumers increasingly embrace convenient payment experiences, NBSL remains focused on building solutions that are simple, seamless and accessible for every user.
The state is witnessing growing adoption of innovative payment experiences such as UPI Lite and RuPay Credit Card on UPI, reflecting increasing consumer preference for seamless and credit-enabled payment options, according to the data reported by The Economic Times and Business Standard. The app's feature set has been built with inclusion at its core, supporting 15+ regional languages including Telugu. As reported by The Hindu BusinessLine, the platform is optimised for low-connectivity environments, enabling deeper digital payments adoption across rural and semi-urban user groups. With the new UPI mandate enforcement, BHIM is positioned to help businesses maintain compliance while continuing to drive digital payment adoption across India's diverse merchant ecosystem.
The app's feature set has been built with inclusion at its core, supporting 15+ regional languages including Telugu. As reported by The Hindu BusinessLine, the platform is optimised for low-connectivity environments, enabling deeper digital payments adoption across rural and semi-urban user groups. With the new UPI mandate enforcement, BHIM is positioned to help businesses maintain compliance while continuing to drive digital payment adoption across India's diverse merchant ecosystem. The platform's focus on simplicity, seamlessness and accessibility ensures it remains relevant as digital payment adoption continues to grow across the country.
