Indian Economy News

UPI accounted for 85.5% of digital transaction volume in H2 2025: RBI report

India’s digital payments ecosystem witnessed robust growth in the second half of 2025, with the Reserve Bank of India (RBI) reporting that the Unified Payments Interface (UPI) accounted for 85.5% of total digital payment transaction volume. The RBI’s latest half-yearly Payment Systems Report highlighted UPI’s growing dominance in retail transactions, driven by rising smartphone penetration, seamless payment experiences and expanding public digital infrastructure. National Electronic Funds Transfer (NEFT) and Prepaid Payment Instruments (PPIs) each contributed 3.6% of transaction volume, while Real Time Gross Settlement (RTGS) accounted for only 0.1% due to its focus on high-value transactions. However, in terms of transaction value, RTGS remained the leading platform with a 68.6% share, followed by NEFT at 14.9% and UPI at 9.5%.

The report also underlined the rapid expansion of India’s digital economy over the past decade. Between 2016 and 2025, digital payment transaction volumes increased 33 times, while transaction values nearly tripled. Over the last five years, total payment transaction volumes surged from 6,437 crore in 2021 to 26,819 crore in 2025. In value terms, transactions increased from Rs. 1,741 lakh crore (US$ 23.55 trillion) to Rs. 3,215 lakh crore (US$ 36.89 trillion), registering a CAGR of 42.9% in volume and 16.6% in value. The RBI noted that growing public trust in secure and cashless transactions continues to accelerate digital payment adoption across India.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.