UPI accounts for 85.5% of India’s digital payment volume in H2 2025, says RBI

UPI accounted for 85.5 per cent of India’s digital payment transaction volume in H2 2025, according to the RBI. While RTGS dominated transaction value, India’s digital payments ecosystem recorded massive growth over the last decade, driven by smartphones and cashless infrastructure

New Delhi: The Unified Payments Interface (UPI) commanded the largest share of transaction volume at 85.5 per cent in the second half (H2) of 2025, followed by NEFT at 3.6 per cent and Prepaid Payment Instruments (PPIs) at 3.6 per cent, according to a latest report by the Reserve Bank of India (RBI).

RTGS accounted for a mere 0.1 per cent, reflecting its role as a high-value, low-volume system.

---

“Conversely, in terms of transaction value, RTGS dominated with 68.6 per cent of the total transaction value, followed by NEFT at 14.9 per cent and UPI at 9.5 per cent, with PPIs contributing only 0.1 per cent — a clear illustration of how RTGS handles large-value settlements while UPI drives mass retail transactions,” said the half-yearly Payment Systems Report by the RBI.

NEFT, positioned as a hybrid system capable of processing both small and large transactions with settlement within an hour, holds the second-highest share in both volume and value, underscoring its versatility and continued relevance in India’s evolving payments ecosystem.

India’s digital payments ecosystem has witnessed impressive expansion, with transaction volumes surging 33 times and values rising by almost 3 times over the 10- year period 2016 to 2025.

Over the most recent five-year period, volumes have grown more than 4 times and values have nearly doubled, translating into a compound annual growth rate (CAGR) of 43 per cent in volume and 17 per cent in value.

“This reflects the nation’s rapidly expanding digital landscape, driven by ubiquitous smartphone penetration, transformative public infrastructure such as the Unified Payments Interface (UPI), and growing public trust in secure, seamless cashless transactions,” the report explained.

The payments ecosystem in India has witnessed remarkable growth in recent years. In terms of volume, the payment transactions grew from 6,437 crore in 2021 to 26,819 crore in 2025 and, in terms of value, from Rs 1,741 lakh crore to Rs 3,215 lakh crore during this period recording a compound annual growth rate (CAGR) of 42.9 per cent and 16.6 per cent, respectively.