India Sees Explosive Growth In Digital Payments: Over 65,000 Crore Transactions In 6 Years

More than 65,000 crore digital transactions have taken place in the last six financial years (FY20 to FY25), which are worth more than Rs 12,000 lakh crore, the Parliament was informed on Monday.

The government has been working very closely with different stakeholders including the Reserve Bank of India (RBI), National Payments Corporation of India (NPCI), fintechs, banks and state governments to increase the adoption rates of digital payments in the nation.

Payments Infrastructure Development Fund (PIDF)

The central bank has set up PIDF in 2021 to encourage the deployment of digital payments acceptance infrastructure in tier 3 to 6 cities, northeastern states and Jammu & Kashmir, the minister said.

Additionally, as of May 31, 2025, around 4.77 crores digital touch points have been deployed through PIDF.

RBI has also developed the Digital Payments Index (RBI-DPI) which measures the extent of digitisation of payments across the country.

This has also increased formal credit channels, which empowers economic participation but also brings more entities into the formal financial ecosystem.

UPI has also enabled citizens including small vendors and rural users, to accept digital payments, reducing cash dependency and increasing  formal economic participation, the minister noted.

How Is The Country Faring In Digital Payments?

Latest data by the central bank reveals that the RBI-DPI index stood at 465.33 for September 2024, highlighting continued growth in digital payment adoption, infrastructure, and performance across the country.

According to Rajesh Londhe, Co-founder and Head of Payments, Phi Commerce, “India’s UPI story—over 65,000 cr transactions in six years—is unmatched globally. What started as peer-to-peer convenience is now core to merchant payments, collections, and credit. Phi Commerce's report, How India Pays, captures this shift—showing UPI’s growing dominance across sectors and its role in shaping payment behaviour. What made it possible is the silent tech layer that NPCI has built to power real-time routing, high availability, and seamless failover. As UPI expands into offline, AutoPay, and cross-border flows, sustaining this speed and reliability will be the real test.”

Also Read: UPI Rules From August 1: From Autopay Transactions To Balance Checks—Key Changes You Need To Know?