According to the RBI’ ( Credit:AI)
Business News: According to the RBI’s Payments Systems Report, UPI has now become India’s most widely used retail digital payment system. Total transactions rose from 117 crore in H1 2024 to 143 crore in H1 2025. The value of UPI payments also jumped by 34.7%, from ₹7,897.1 lakh crore to ₹10,637 lakh crore, showing strong adoption across users.
The main reasons behind UPI’s popularity are its ease of use, fast speed, and 24-hour availability. From shopkeepers to large retailers, UPI is the go-to option for quick transactions. By mid-2025, UPI accounted for 84.8% of the total number of transactions in India, proving its dominance in everyday retail payments.
UPI’s journey has been extraordinary. In 2019, India recorded only 1,079 crore UPI transactions worth ₹18.4 lakh crore. By 2024, this number had surged to 17,221 crore transactions, with the total value skyrocketing to ₹246.8 lakh crore. This phenomenal rise highlights India’s shift towards digital payments.
Despite UPI’s dominance in transaction numbers, RTGS (Real-Time Gross Settlement) remains the leader in total transaction value. UPI accounts for only 9.1% of value, while RTGS commands 68.7%. However, RTGS contributes just 0.1% of total transactions due to its high minimum transfer limit of ₹2 lakh.
NEFT (National Electronic Funds Transfer) accounted for 3.9% of transactions by volume and 15.1% by value. Card payments represented 2.7% of transactions and only 0.8% by value. Cheque transactions have now become minimal, accounting for just 0.2% in volume but still 2.3% in total value.
Today, UPI is used by every section of society, from urban professionals to rural shopkeepers. Whether paying for groceries, bills, or services, UPI has become the simplest and most trusted method. The system’s reach has extended into smaller towns and villages, making digital payments a common part of daily life.
The RBI report makes it clear that UPI is not just a payment system but also the face of Digital India. While UPI drives small, everyday transactions, RTGS and NEFT continue to serve large-value payments. Together, these systems strengthen India’s digital economy, making the country one of the fastest adopters of cashless transactions globally.
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