Digital payments form 99.8% of all transactions in H1 2025, says RBI

India’s digital payments ecosystem continues to expand rapidly, with the Unified Payments Interface (UPI) handling the vast majority of transactions by volume, while the Real Time Gross Settlement (RTGS) system remains dominant in terms of value, according to the Reserve Bank of India’s Payment Systems Report – Half Year Ended June 2025.“India’s digital payments ecosystem has witnessed impressive growth, driven by increased accessibility, user adoption, and a robust acceptance infrastructure,” the RBI said in the report’s foreword. “The Unified Payments Interface (UPI) has completely transformed digital payments in India and brought about significant enhancements across various payment instruments.”The central bank’s half-yearly Payment Systems Report shows total payments of 12,549 crore transactions worth ₹1,572 lakh crore in H1 2025. Digital payments accounted for 99.8% of volume and 97.7% of value during the period, underscoring the deep penetration of electronic payment rails across the economy.UPI’s scale is staggering — it processed 10,637 crore transactions valued at ₹143.3 lakh crore in H1 2025, accounting for roughly 85% of payment volumes. However, as most UPI transactions are small-ticket, the retail system contributed only about 9% of total value.By contrast, RTGS — India’s large-value payments backbone — handled 16.1 crore transactions worth ₹1,079.2 lakh crore in the same period, giving it a commanding 69% share of payment value despite representing only 0.1% of volumes. This divergence, with UPI driving retail volumes and RTGS underpinning high-value settlements, reflects what the RBI described as “a diversified and inclusive payments ecosystem” that ensures both efficiency and safety.Infrastructure data underline the depth of adoption: 111.64 crore outstanding cards (11.12 crore credit; 100.52 crore debit), UPI QR codes at 6,782 lakh, PoS terminals at 117.91 lakh, FASTag issuance at 11.11 crore, and 1,782 toll plazas onboarded by June 2025. The Payments Infrastructure Development Fund (PIDF) has subsidised the roll-out of over 14 lakh PoS devices, 4 crore QR codes and 67.6 lakh soundboxes, with over half of these deployed in Tier-5 and Tier-6 centres.Beyond domestic rails, the RBI is pushing the international agenda. The report highlights progress on cross-border linkages, notably the UPI–PayNow corridor with Singapore, and ongoing efforts to extend UPI and RuPay acceptance globally, aimed at lowering remittance costs to India. The RBI frames these initiatives as part of its strategy to position India as a major node in global fast payments.“As we move forward, the Reserve Bank of India will continue to promote an efficient, resilient, and accessible payment infrastructure that supports the country’s economic growth and digital transformation,” said Vivek Deep, Executive Director, in the report’s foreword.(Edited by : Sheersh Kapoor)First Published: Oct 23, 2025 9:01 PM IST

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