Check the below steps to upload an Image into your application :-
1. Create a Binary rule (Technical --> New--> Binary)
2. Fill the three mandatory fields, (i) Appliaction Name(Directory) : webwb (ii) File Name : your file name (iii) File type : (please use png type it is working fine) . (iv) Mension your Rule set name and version. click create
3. The new rule will open and upload your file from your local path
4. Mention Relatve path name: images. and save
5. Now your Images will be uploaded into pega.
6. Use your image in your section just by selecting it using search option in the image upload.