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RBI Payment Systems Report: UPI Dominates as Paper Transactions Decline
RBI Report: According to a report released by the Reserve Bank of India on Thursday, digital payment transactions accounted for 99.7% of payments by volume and 97.5% by value in the calendar year 2024. This trend continued in the first half of 2025. Let's explore this in detail.
According to a report released by the Reserve Bank of India on Thursday, digital payment transactions accounted for 99.7% of payments by volume and 97.5% by value in the calendar year 2024. This trend continued in the first half of 2025. The RBI's semi-annual Payment Systems Report for June 2025 states that the payments ecosystem in India has seen significant growth in recent years. The payments landscape in India comprises a variety of payment systems designed to meet the diverse needs of users. These include paper-based instruments (checks) as well as other digital payment systems.
Electronic payment systems consist of NEFT, IMPS, RTGS, NACH, credit and debit cards, prepaid payment instruments, and UPI. The report indicates a growth trend in all categories, with the exception of paper instruments. Checks represent 2.3 percent of total value transactions. Payment transactions are expected to grow from ₹3,248 crore in calendar year 2019 to ₹20,849 crore in calendar year 2024, and from ₹1,775 lakh crore in terms of value to ₹2,830 lakh crore. According to the report, transaction volumes in half-year ending June 2025 were ₹12,549 crore, from ₹1,572 lakh crore. Digital payment transactions account for nearly all the growth in payments.
The Reserve Bank of India (RBI) has released its Payment Systems Report for the first half of calendar year 2025. It shows the continued growth of the Unified Payments Interface (UPI) share in domestic digital transactions. According to the RBI report, UPI contributed 84.8 percent of total payments during this period, making it the most widely used digital payment system in the country. UPI payments accounted for 9.1 percent of total payments.
Real-Time Gross Settlement (RTGS), used for high-value transfers, accounted for only 0.1 percent of payments, but its share in total payments was 68.7 percent. According to the report, UPI recorded a significant ₹143 crore worth of transactions during the first half of 2025, up from ₹130 crore in the second half of 2024. The total value of transactions through UPI reached ₹10,637 crore in the first half of 2025, compared to ₹9,323.7 crore in the previous half.
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According to an RBI report, digital payments in India have grown 6.6 times in terms of volume and 1.6 times in terms of value over the last five years. The Indian payments ecosystem is comprised of a wide range of payment options offered by banks and non-banking institutions. Currently, our payment system includes credit cards and debit cards, UPI, faster payment systems like IMPS, NEFT, RTGS, digital and mobile wallets, net banking, etc.
