India October 2026 payments: UPI volumes fall for a second month as overnight rates rise

UPI payments fell again in October, partly because Diwali came later this year

The Unified Payments Interface (UPI) is India's real-time system for phone-based payments between bank accounts. Its volumes give an early read on everyday spending.

• Volume: 23,829 million (mn) transactions in October, down from 24,068 mn in September and 24,509 mn in August.
• Value: ₹29.25 lakh crore (Indian rupees), down from ₹29.37 lakh crore.
• Against a year earlier, volume is up about 15% but value is up only about 7%.

Part of this is timing. Diwali fell in October last year and falls in November this year, so the year-earlier comparison is against a high base.

Other payment systems also slowed or stalled

• The Immediate Payment Service (IMPS), an instant bank-to-bank transfer system, handled 348.8 mn transactions, down from 354.1 mn. It was the third monthly drop in a row.
• National Electronic Toll Collection (NETC), the FASTag system for highway tolls, was flat at 340.9 mn. That is below its May–June levels of 362–375 mn.

Overnight borrowing costs rose while the rupee firmed and shares weakened

• The Mumbai Interbank Offered Rate (MIBOR), the overnight rate at which banks lend to each other, rose from 5.13% on October 5 to 5.87% on October 26, the latest reading.
• The rupee stood at 94.88 per US dollar on November 2. It was firmer than 95.25 on October 30 and 95.75 on October 12.
• The Nifty 50, a share index of large Indian companies, averaged 22,707 in October. That is 2.9% lower than September and the lowest monthly average in six months.