UPI recorded 916.9 million transactions worth ₹90,029 crore on Diwali 2026, representing a 32% increase in volume compared to the same day last year. According to data released by the National Payments Corporation of India (NPCI), the transaction volume increased from 695.7 million transactions on November 8, 2025, to 916.9 million in 2026. In value terms, UPI transactions rose to ₹90,029.43 crore on November 8 against ₹88,350.79 crore last year, as reported by Business Standard. The surge was driven by festival buying patterns that boosted digital payment adoption across the country, with the UPI system processing ₹90,029.43 crore in value transfers on the festival day.
Banks are implementing stricter security protocols for fintech partners amid rising cyber fraud risks during the festive season. According to industry sources and emails reviewed by Business Standard, sponsor banks are advising their fintech partners to strengthen merchant onboarding checks, tighten beneficiary registration, and restrict straight-through processing of payouts - the automated systems that allow businesses to transfer money without manual verification. The heightened scrutiny comes as festival spending drove digital payments to record levels, with UPI processing 975 million transactions alone on November 7, the day before Diwali. Banks are implementing hygiene checks including handling of API keys, authentication methods, and restricting IP addresses to prevent fraudulent activities.
The digital payments momentum continued with 975.8 million transactions worth ₹1,36,118 crore recorded on the day before Diwali, demonstrating sustained festival-related activity. As reported by Business Standard, this pre-Diwali surge contributed to October 2026 achieving a monthly record for UPI transactions. The strong performance was attributed to last-minute festival buying patterns that drove increased digital payment adoption across the country, with the UPI system processing ₹1,36,118 crore in value transfers on the day prior to the festival.
According to Business Standard reports, October 2026 saw UPI transactions reach 25.47 billion in volume and ₹31.53 lakh crore in value terms, supported by sustained festival buying throughout the month. The National Payments Corporation of India (NPCI), an initiative of the Reserve Bank of India (RBI) and the Indian Banks' Association (IBA), operates as the umbrella organisation for retail payments and settlement systems in India. The ₹31.53 lakh crore value transfer in October 2026 demonstrates the continued growth and adoption of digital payment systems in India, with the UPI system processing ₹31.53 lakh crore in total value transfers for the entire month.
The Reserve Bank of India (RBI) issued a consolidated cyber security framework last week covering all non-bank payment system operators (PSOs). The revised Master Directions on Cyber Resilience and Digital Payment Security Controls apply to entities including the National Payments Corporation of India (NPCI), card networks, payment aggregators, prepaid payment instrument (PPI) issuers and white-label ATM operators (WLAOs). Payment firms are responding by implementing more frequent API key rotation and restricting IP addresses to prevent fraudulent access to merchant accounts. The enhanced security measures reflect the shrinking window between software vulnerability discovery and exploitation, as artificial intelligence makes it easier to identify and exploit weaknesses in digital systems.
