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UPI Leads Festive Payments with ₹17.8 Lakh Crore in Transactions
UPI transactions reached ₹17.8 lakh crore during the festive season, marking a rise in digital payment activity and reflecting increased consumer transactions across various segments.
Author: Meera
Published: 7 hours ago
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India’s digital payment system, Unified Payments Interface (UPI), has once again proved its dominance during the festive season. According to a recent report by Bank of Baroda, UPI transactions touched a record value of ₹17.8 lakh crore during the festive period in 2025, showing a strong surge in consumer spending and a revival in market demand. The Hindu Businessline reported.
Strong Growth in Digital Payments
The report highlighted that UPI payments rose sharply from ₹15.1 lakh crore last year to ₹17.8 lakh crore this year. This growth shows how digital payments are becoming central to India’s spending habits, especially during major festivals such as Dussehra and Diwali.
In September 2025, UPI transactions also saw a 2.6% month-on-month rise, marking steady progress in digital financial activity.
Debit Cards Regain Popularity
While UPI remained the most used payment method, debit cards made a notable comeback. The total value of debit card transactions rose to ₹65,395 crore, up significantly from ₹27,566 crore in the previous festive season.
This shift indicates that consumers are regaining confidence in card-based payments, reversing the earlier trend of falling debit card use.
Credit Cards Show Restraint
Interestingly, credit card spending grew at a slower pace, suggesting that people preferred to spend using their own funds through UPI or debit cards instead of relying on credit.
The combined transaction value of UPI, debit, and credit cards during the festive period reached ₹ 18.8 lakh crore, reflecting an overall boost in retail transactions. Analysts see this as an early signal of a revival in private consumption during the current quarter.
Spending Patterns
The report also shed light on average spending per transaction:
- Debit cards: 8,084
- Credit cards: 1,932
- UPI: 1,052
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The data underscores the continued growth of digital transactions in India. With UPI leading festive payments and debit card usage showing renewed strength, the trend indicates an expanding role for digital payment systems in everyday spending.
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