The August transaction count was higher than July’s 23.66 billion. Compared with August last year, the number of payments increased 22%, while their combined value grew 20%. The monthly value was also close to the peaks recorded in May and July, though the new record was in transaction volume.

Experts linked part of the increase to festive spending. Raksha Bandhan, for example, encouraged transfers between individuals and payments for small gifts. These uses point to UPI becoming more deeply embedded in everyday payments, alongside its role in sending money to family and friends.

NPCI, the organisation behind India’s retail payment systems, was established by RBI and the Indian Banks’ Association. UPI began operating on 25 August 2016. Its international acceptance now covers 11 countries, with Uzbekistan the newest addition; other destinations include Singapore, France, Nepal and the UAE.

Attention is now turning to the wider festive period and newer payment options such as credit on UPI, which allows customers to pay through QR codes using a loan limit. As these services develop and transaction traffic expands, banks will need technology systems that can reliably support the growing payment load.