Digital payment volume up 34.8% in FY25, UPI accounts for Rs 180 lakh crore: RBI report

Digital payments ecosystem in India recorded strong growth in FY2024–25, both in terms of volume and value, the Reserve Bank of India’s (RBI) Annual Report noted. The total volume of digital transactions surged 34.8%, while the overall value increased by 17.9%.

Retail digital payments alone saw a 34.9% rise in volume and a 16.1% jump in value. The Unified Payments Interface (UPI) continued to be the dominant force, registering a 41.7% growth in transaction volume and 30.3% increase in value. UPI accounted for a massive 84% of all retail digital payment volumes.

According to the RBI, UPI handled a staggering 11,761.4 crore transactions during the fiscal year —representing a 59.2% jump in volume over the previous year. The value of these transactions reached Rs 180.24 lakh crore, reflecting a robust 44.8% growth year-on-year.

The report noted that UPI’s share in total retail digital payment volume surged from 75.6% in FY2022-23 to 83.9% in FY2023-24, underscoring its expanding footprint across both urban and rural India. “The success of Unified Payments Interface (UPI) placed India in a leadership position with a share of 48.5 per cent in global real-time payments by volume,” the RBI stated.

Among other major payment systems, National Electronic Funds Transfer (NEFT) transactions went up by 32.4% in volume and 13.4% in value. Real-Time Gross Settlement (RTGS) transactions also grew, with volume rising by 12% and value increasing 17.8%.

Digital modes now make up nearly the entire non-cash retail payment ecosystem. The share of digital transactions rose slightly to 99.9% in FY25, from 99.8% in the previous year.

The currency-deposit ratio declined to 15.4% as of March 21, 2025, compared to 15.9% a year ago—indicating deeper digital penetration and reduced dependence on physical cash.

To enhance user convenience and system capabilities, the RBI introduced several new features to the UPI platform during the year. These included Delegated Payments, UPI access at Cash Deposit Machines, and the integration of Prepaid Payment Instruments (PPI) with third-party UPI apps. Additionally, the regulator enabled automatic balance top-ups for UPI Lite, FASTag, and National Common Mobility Card (NCMC).

Transaction limits were also revised across multiple categories. Notably, the cap for UPI-based tax payments was raised to Rs 5 lakh.

On the global front, UPI’s international footprint expanded significantly. QR-code-based UPI transactions were enabled in countries such as France, Nepal, Mauritius, and Sri Lanka. The RBI also partnered in Project Nexus, a Bank for International Settlements (BIS) initiative aimed at linking UPI with fast payment networks in ASEAN countries.

To further boost digital inclusion, the RBI highlighted the rollout of innovative features like ‘Delegated Payments’, which allows a primary user to authorize another person to make UPI payments on their behalf within a set limit. This initiative is part of the central bank’s broader Payments Vision 2025 strategy aimed at deepening digital access and enhancing security.

In response to rising cybersecurity concerns, the RBI also proposed the introduction of a dedicated internet domain—‘bank.in’—for Indian banks, alongside plans for ‘fin.in’ for other financial institutions, in a bid to tackle fraud and phishing attacks in digital transactions.