From Cash to Code: RBI Says Digital Payments Now 99.8% of All Transactions

An RBI report for H1 2025 shows India's digital payment ecosystem is rapidly expanding, with digital methods comprising 99.8% of transaction volume.

India's digital payment ecosystem continues its rapid expansion, with the Unified Payments Interface (UPI) maintaining a dominant position in transaction volumes, according to the Reserve Bank of India's Payment Systems Report for the half year ended June 2025. The report shows that digital transactions in India have grown 38 times in volume and over three times in value in the past decade. During the first half of 2025 alone, total payment transactions touched 12,549 crore in volume and Rs 1,572 lakh crore in value, with digital payments accounting for 99.8% of transactions by volume.

UPI remained the most preferred payment mode, contributing 85% of total transaction volume, though only 9% in value. In contrast, the Real-Time Gross Settlement (RTGS) system accounted for 69% of total transaction value, underscoring its role in high-value fund transfers.

The RBI report also highlighted continued growth in retail systems such as NEFT, IMPS, NACH, BBPS, and NETC, reflecting India's deepening digital payment infrastructure. UPI transactions alone surged to 10,637 crore in H1 2025, amounting to Rs 143.3 lakh crore.

RBI Executive Director Vivek Deep, in his foreword, said the continued evolution of India's payment systems has made them more efficient, inclusive, and resilient, playing a vital role in supporting the country's digital transformation and economic growth.

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