741 banks on UPI: How India built the world’s biggest real-time payments ecosystem
741 banks on UPI: How India built the world’s biggest real-time payments ecosystem
UPI has grown from a network of just 21 banks at launch in 2016 to 741 banks by July 2026, creating one of the world’s largest real-time payments ecosystems. The expansion has accompanied a near 13,000-fold surge in annual transaction volume, cementing UPI’s role as the backbone of India’s digital payments system.
Business Today Desk
- Aug 25, 2026,
- Updated Aug 25, 2026 2:59 PM IST
When the Unified Payments Interface (UPI) was launched in August 2016, just 21 banks were part of the network. A decade later, the platform has expanded to 741 banks as of July 2026, reflecting the scale of institutional participation behind India’s digital payments revolution.
UPI was launched by the National Payments Corporation of India (NPCI) under the regulatory oversight of the Reserve Bank of India (RBI). Its interoperable, real-time architecture allowed users to make peer-to-peer (P2P) and peer-to-merchant (P2M) payments through a single platform, helping create a common digital payments infrastructure across banks.
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The expansion in participating banks has been broad-based. The number of banks live on UPI rose from 44 in FY2016-17 to 703 in FY2025-26, before reaching 741 by July 2026. The participating institutions include public sector banks, private banks, small finance banks, payment banks and cooperative banks.
This widening participation has helped UPI extend its reach geographically and across different segments of the banking system. Banks can operate as remitter payment service providers, processing outgoing transactions, and/or beneficiary payment service providers, receiving funds, while NPCI monitors performance metrics for participants.
MUST READ: 10 years of UPI: Transaction value surges 4,000-fold to reach ₹314 lakh crore
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Scale goes beyond the banking network
The growth in the bank ecosystem has coincided with a dramatic rise in UPI usage. Annual transaction volume increased from 1.78 crore in FY2016-17 to 24,162 crore in FY2025-26, an almost 13,000-fold jump. Transaction value climbed from ₹0.07 lakh crore to around ₹314 lakh crore over the same period.
UPI processed an average of 66 crore transactions a day in 2026, while July recorded a monthly record of 2,366 crore transactions worth ₹29.88 lakh crore. UPI accounted for 84% of India’s digital payments in FY2025-26, underscoring its central role in the country’s payments ecosystem.
The composition of transactions also shows how deeply UPI has entered everyday commerce. P2M payments accounted for 63% of transaction volume, with 86% of P2M transactions below ₹500. P2P payments, meanwhile, accounted for 71% of transaction value, indicating their greater role in higher-value transfers.
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ALSO READ: The Rs 606 problem: What happens when India puts a price on UPI
India’s global payments footprint
UPI’s scale has also taken it beyond India. The platform accounted for nearly 49% of global real-time payment transaction volume in 2025, according to the government release, which notes that the International Monetary Fund has recognised UPI as the world’s largest real-time payment system by transaction volume.
UPI is currently operational in 11 countries, including the UAE, France, Singapore, Sri Lanka, Nepal and Mauritius, marking its evolution from a domestic payments platform into a cross-border digital payments infrastructure.
As UPI enters its second decade, the government says the focus will remain on bringing more users and merchants into the ecosystem, supported by policy measures, technological advancement and greater financial inclusion.
MUST READ: 'Not quite happy to see MDR in UPI': Capitalmind CEO suggests ₹5 cap instead of percentage fee
When the Unified Payments Interface (UPI) was launched in August 2016, just 21 banks were part of the network. A decade later, the platform has expanded to 741 banks as of July 2026, reflecting the scale of institutional participation behind India’s digital payments revolution.
UPI was launched by the National Payments Corporation of India (NPCI) under the regulatory oversight of the Reserve Bank of India (RBI). Its interoperable, real-time architecture allowed users to make peer-to-peer (P2P) and peer-to-merchant (P2M) payments through a single platform, helping create a common digital payments infrastructure across banks.
Advertisement
The expansion in participating banks has been broad-based. The number of banks live on UPI rose from 44 in FY2016-17 to 703 in FY2025-26, before reaching 741 by July 2026. The participating institutions include public sector banks, private banks, small finance banks, payment banks and cooperative banks.
This widening participation has helped UPI extend its reach geographically and across different segments of the banking system. Banks can operate as remitter payment service providers, processing outgoing transactions, and/or beneficiary payment service providers, receiving funds, while NPCI monitors performance metrics for participants.
MUST READ: 10 years of UPI: Transaction value surges 4,000-fold to reach ₹314 lakh crore
Advertisement
Scale goes beyond the banking network
The growth in the bank ecosystem has coincided with a dramatic rise in UPI usage. Annual transaction volume increased from 1.78 crore in FY2016-17 to 24,162 crore in FY2025-26, an almost 13,000-fold jump. Transaction value climbed from ₹0.07 lakh crore to around ₹314 lakh crore over the same period.
UPI processed an average of 66 crore transactions a day in 2026, while July recorded a monthly record of 2,366 crore transactions worth ₹29.88 lakh crore. UPI accounted for 84% of India’s digital payments in FY2025-26, underscoring its central role in the country’s payments ecosystem.
The composition of transactions also shows how deeply UPI has entered everyday commerce. P2M payments accounted for 63% of transaction volume, with 86% of P2M transactions below ₹500. P2P payments, meanwhile, accounted for 71% of transaction value, indicating their greater role in higher-value transfers.
Advertisement
ALSO READ: The Rs 606 problem: What happens when India puts a price on UPI
India’s global payments footprint
UPI’s scale has also taken it beyond India. The platform accounted for nearly 49% of global real-time payment transaction volume in 2025, according to the government release, which notes that the International Monetary Fund has recognised UPI as the world’s largest real-time payment system by transaction volume.
UPI is currently operational in 11 countries, including the UAE, France, Singapore, Sri Lanka, Nepal and Mauritius, marking its evolution from a domestic payments platform into a cross-border digital payments infrastructure.
As UPI enters its second decade, the government says the focus will remain on bringing more users and merchants into the ecosystem, supported by policy measures, technological advancement and greater financial inclusion.
MUST READ: 'Not quite happy to see MDR in UPI': Capitalmind CEO suggests ₹5 cap instead of percentage fee
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