**Executive Summary**
This report details the exponential growth of retail digital payments in India, with the Unified Payments Interface (UPI) accounting for 81% of transactions in FY 2024-25. It highlights coordinated efforts by the Government, RBI, and NPCI to expand infrastructure, enhance security against financial fraud, and improve financial literacy. Key milestones include the deployment of 56.86 crore QR codes and the establishment of 2,421 Centres for Financial Literacy by March 31, 2025.
**Key Points / Main Content**
* **Growth Trends and UPI Dominance**
* Retail digital payment volume grew from 7,176.90 crore in FY 2021-22 to 22,167.90 crore in FY 2024-25.
* UPI has emerged as the world’s largest real-time retail payment system.
* Growth is driven by smartphone penetration, Aadhaar-enabled authentication, e-KYC, and expanded merchant acceptance.
* **Fraud Prevention and Cybersecurity**
* Security measures include device binding, two-factor authentication (PIN), and daily transaction limits.
* NPCI provides an AI/ML-based fraud-monitoring solution to all banks for suspicious transaction alerts.
* The "Chakshu" facility and the Digital Intelligence Platform (DIP) allow citizens to report fraudulent calls, SMS, or WhatsApp messages.
* The National Cybercrime Reporting Portal (www.cybercrime.gov.in) and helpline "1930" are active for incident reporting.
* **Infrastructure and Inclusion Initiatives**
* The Payment Infrastructure Development Fund (PIDF) has supported the deployment of 5.80 crore digital touch points and 56.86 crore QR codes in rural and interior areas.
* UPI 123PAY enables payments via Interactive Voice Response (IVR) for feature-phone users and low-connectivity areas.
* "Hello UPI" has been launched to facilitate conversational digital payments.
* **Financial Literacy and Awareness**
* 2,421 Centres for Financial Literacy (CFL) have been established as of March 31, 2025, to disseminate financial education.
* The RBI and banks conduct annual Financial Literacy Weeks and ongoing media campaigns to promote safe digital usage.
**Impact Analysis**
**General Public and Feature-Phone Users**
**Impact:** Citizens gain access to secure, real-time payment systems regardless of geographic location or internet connectivity through tools like UPI 123PAY.
**Action Required:** Users should utilize the National Cybercrime Reporting Portal or "Chakshu" facility to report suspected frauds and participate in financial literacy programs for safe usage.
**Banks and Financial Institutions**
**Impact:** Institutions are supported by AI/ML fraud-monitoring tools and infrastructure funds to expand their service reach.
**Action Required:** Banks must implement mandatory security features such as device binding and 2FA, and continue conducting awareness campaigns via SMS and radio.
**Merchants (Urban and Rural)**
**Impact:** Increased availability of digital touch points and QR codes through the PIDF scheme facilitates easier transaction processing.
**Action Required:** Merchants in rural and interior areas should adopt provided digital infrastructure to participate in the growing digital economy.
Key Entities Referenced
Unified Payments Interface (UPI): The world's largest real-time retail payment system, accounting for 81% of India's retail digital payments in FY 2024-25.
National Payments Corporation of India (NPCI): The primary entity responsible for managing digital payment systems like UPI, UPI 123PAY, and Hello UPI, as well as fraud-monitoring solutions.
Reserve Bank of India (RBI): The central regulatory authority coordinating the growth of digital payments, conducting awareness campaigns, and managing infrastructure funds.
Payment Infrastructure Development Fund (PIDF): A fund established by the RBI to support the deployment of digital payment infrastructure, such as QR codes and touch points, in rural and interior areas.
Incentive Scheme for Promotion of Digital Payments: A government initiative designed to facilitate the expansion and adoption of digital payment transactions across the country.
Ministry of Finance
Coordinated Efforts of Government, RBI and
NPCI Accelerate Growth in Digital Payments
UPI emerges as world’s largest real-time retail payment
system, accounting for 81% of retail digital payments in FY
2024-25
Posted On: 16 MAR 2026 4:31PM by PIB Delhi
The digital payment transactions have grown exponentially in the last few years due to coordinated efforts
of the Government, Reserve Bank of India (RBI) and National Payments Corporation of India (NPCI).
The total retail digital payment transactions including its growth rate during the last four financial years
are given below:
Retail Digital Payments Growth in Percentage
Financial Year
Volume Value Volume Value
(in Crore) (in Lakh Crore)
FY 2021-22 7176.90 457.44 - -
FY 2022-23 11369.56 587.39 58.42% 28.41%
FY 2023-24 16416.02 719.37 44.39% 22.47%
FY 2024-25 22167.90 849.12 35.04% 18.04%
Of the total retail digital payment transactions, the Unified Payments Interface (UPI) accounts for 81% in
FY2024-25 and has emerged as the largest real-time retail payment system in the world. The specific data
on demographic or geographic segments-wise contribution in digital payments is not maintained. The
growth in retail digital payments, including UPI, is driven by several factors such as smartphone
penetration, Aadhaar-enabled authentication, e-KYC, wider financial inclusion and expansion of merchant
acceptance infrastructure across both urban and rural areas. The digital public infrastructure has supported
inter-operability and simplified on-boarding processes, contributing to wider adoption across user groups.
The initiatives such as the Incentive Scheme for Promotion of Digital Payments, Payment Infrastructure
Development Fund (PIDF), etc. have also facilitated the continued expansion of digital payments.The increase in digital payments has posed certain challenges such as cyber security risk, digital adoption,
literacy and awareness, network issue, etc. However, no such specific challenges related to Maharashtra
and Andhra Pradesh have been reported.
To address the digital financial frauds, various initiatives have been taken up by the Government, RBI and
NPCI. These, inter alia, include device binding between the customer’s mobile number and device,
two-factor authentication through PIN, daily transaction limits and restrictions on certain use cases. NPCI
provides an AI/ML-based fraud-monitoring solution to all banks for generating alerts and declining
suspicious transactions. RBI and banks have also been conducting awareness campaigns through short
SMS, radio campaigns and other publicity material for prevention of cyber-crime.
Further, to facilitate citizens in reporting cyber incidents including financial frauds, Ministry of Home
Affairs (MHA) has launched National Cybercrime Reporting Portal (www.cybercrime.gov.in) and
National Cybercrime Helpline Number “1930”. Similarly, Department of Telecommunications (DoT) has
launched Digital Intelligence Platform (DIP) and “Chakshu” facility, which enables citizens to report
suspected fraudulent communication received through calls, SMS or WhatsApp.
To support the deployment of payment infrastructure in the rural and interior areas, PIDF was set up by
RBI. Approximately 5.80 crore digital touch points and about 56.86 crore QR codes have been deployed
under the scheme.
To facilitate users in low connectivity areas and for feature-phone users, NPCI has launched UPI 123PAY
(enabling payments through Interactive Voice Response (IVR) and sound-based proximity payments), and
Hello UPI (enabling conversational payments).
Further, steps have been taken for greater financial awareness & literacy and safe usage of digital
payments. A total of 2421 Centre for Financial Literacy (CFL) have been set up across the country as on
31 March 2025, with one CFL covering three blocks. Financial Literacy Week has been conducted
annually since 2016 to disseminate financial education among citizens.
This information was given by Union Minister of Finance Smt Nirmala Sitharaman in Lok Sabha today.
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