NPCI logged 10.65 billion UPI transactions in September 2026 without assigning them to any state. This "Unclassified" category now accounts for 44% of all national UPI volume, up from 13% eighteen months ago. The rising data gap makes it harder for fintechs and regulators to understand payment flows across the country.
How We Got Here
The "Unclassified" row in NPCI's state-wise data has existed since at least April 2023. NPCI explicitly states these are transactions it could not place, and they are not redistributed among states.
The Numbers
- The 10.65B unclassified volume for September 2026 was a slight drop from 10.88B recorded in August.
- This unclassified block represents a massive Rs 11.48 lakh crore in transaction value for September alone.
- Maharashtra, the highest classified state, recorded 2.36B transactions, followed by Karnataka and UP at 1.25B each.
- The unclassified percentage has surged from 13% of total UPI volume in April 2023 to 44% by September 2026.
What Happens Next
🇮🇳 Why This Matters for India
For founders building payment solutions or consumer-facing apps in Tier-2 cities like Nagpur or Nashik, the missing 44% of data makes regional market sizing and product localization nearly impossible.
The Take
What's being missed here is the systemic impact: a 44% data black hole cripples any granular economic analysis for states. Until NPCI fixes its tagging, planning for state-specific digital inclusion or policy will remain an educated guess at best.
Source:
MediaNama ↗