**Executive Summary**
This document is an answer provided by the Minister of State in the Ministry of Finance to the Lok Sabha regarding the growth of digital payment infrastructure. It details initiatives by the Government and Reserve Bank of India (RBI) to encourage digital payment adoption, including grant support through the Payments Infrastructure Development Fund (PIDF). The response also includes details on measures taken to prevent payment-related frauds. Data up to December 31, 2025, is included.
**Key Points / Main Content**
* **Digital Payment Infrastructure Initiatives:**
* Government and RBI initiatives are encouraging digital payment infrastructure deployment in Tier-3 to 6 centers, North-Eastern States, Ladakh, Jammu, and Kashmir.
* RBI, through PIDF, provides grant support to banks and fintechs for deploying digital payment infrastructure like POS terminals and QR codes.
* Approximately 5.80 crore digital touch points have been deployed through PIDF as of December 31, 2025.
* **Fraud Prevention Measures:**
* Government, RBI, and NPCI have taken measures to prevent payment-related frauds, including those involving small value transactions.
* Measures include device binding, two-factor authentication (PIN), daily transaction limits, and use case restrictions.
* NPCI offers a fraud monitoring solution to banks that generates alerts and declines transactions using AI/ML.
* RBI and banks conduct awareness campaigns on cyber-crime prevention via SMS, radio, and publicity.
* **Year on Year Growth of Digital Payment Infrastructure:**
* POS Terminals (Lakhs)
* 2024: 100.01
* 2025: 114.75
* Y-o-Y Growth: 14.74%
* QR Codes (UPI + Bharat QR) (Lakhs)
* 2024: 6399.13
* 2025: 7372.55
* Y-o-Y Growth: 15.21%
* **Monthly UPI transactions in Maharashtra and Madhya Pradesh in FY 2025 – 26**
* Details of monthly UPI transaction volumes and the percentage increase in UPI volume for each month from April to December, 2025 for Maharashtra and Madhya Pradesh are mentioned in Annexure II.
**Impact Analysis**
**Banks and Fintechs**
* **Impact:** Banks and fintechs are primary beneficiaries of the PIDF grant support, enabling them to deploy more digital payment infrastructure. They also benefit from NPCI's fraud monitoring solutions.
* **Action Required:** Banks and fintechs should leverage PIDF to expand digital payment infrastructure and implement the fraud prevention measures provided by NPCI.
**Customers**
* **Impact:** Customers benefit from increased access to digital payment options, improved security measures, and awareness campaigns on cyber-crime prevention.
* **Action Required:** Customers should adhere to security guidelines, such as enabling two-factor authentication and being aware of potential cyber-crime risks.
**RBI and NPCI**
* **Impact:** RBI and NPCI play key roles in overseeing and implementing digital payment infrastructure development and fraud prevention measures.
* **Action Required:** Continue monitoring the effectiveness of PIDF and fraud prevention measures, making adjustments as needed based on data and emerging threats.
Key Entities Referenced
Reserve Bank of India (RBI): The central bank of India, playing a key role in regulating and promoting digital payments infrastructure and ensuring cybersecurity.
National Payments Corporation of India (NPCI): An organization that has taken various initiatives to prevent payment-related frauds, including device binding, two-factor authentication, and fraud monitoring solutions.
Payments Infrastructure Development Fund (PIDF): A scheme by RBI providing grant support for deploying digital payment infrastructure in tier-3 to 6 centers, North-Eastern States, Ladakh, Jammu, and Kashmir.
Ministry of Finance: The government ministry responsible for overseeing digital payment infrastructure.
Maharashtra: One of the states for which data on UPI transactions is provided.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
LOK SABHA
UNSTARRED QUESTION NO. 458
ANSWERED ON MONDAY, 02 FEBRUARY, 2026/MAGHA 13, 1947 (SAKA)
Digital Payment Infrastructure
†458. SHRI NILESH DNYANDEV LANKE:
SHRI GYANESHWAR PATIL:
DR. SHIVAJI BANDAPPA KALGE:
Will the Minister of FINANCE be pleased to state:
a) whether the Government has reviewed the growth of digital payment infrastructure in
Tier-3 cities in the country, if so, the details thereof;
b) the details of percentage increase in UPI transactions in Maharashtra and Madhya
Pradesh;
c) whether Reserve Bank of India has given instructions to banks to increase QR coverage
in rural areas; and
d) if so, the details thereof along with the measures taken to ensure cyber security of small
value transactions?
Answer
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) to (c) The year-on-year growth of digital payment infrastructure is attached as Annexure – I.
The details of UPI transactions in Maharashtra is attached as Annexure – II.
The Government and Reserve Bank of India (RBI) have been taking up various initiatives to
encourage the deployment of digital payment acceptance infrastructure in tier-3 to 6 centers,
North-Eastern States, Ladakh, Jammu, and Kashmir. The RBI through the Payments Infrastructure
Development Fund (PIDF) provides grant support to the banks and fintechs for deployment of
digital payment infrastructure (such as POS Terminals and QR codes). As of December 31, 2025,
approximately 5.80 crore digital touch points have been deployed through PIDF.
(d) In order to prevent payment-related frauds including the small value transaction, various
initiatives have been taken up by the Government, RBI, and the National Payments Corporation
of India (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 use
cases. NPCI also provides a fraud monitoring solution to all the banks to generate alerts and decline
transactions using AI/ML-based models. RBI and banks have been conducting awareness
campaigns through short SMS, radio campaigns, and publicity on the prevention of cyber-crime.
*****Annexure-I
“Year on Year growth in Digital Payment Infrastructure”
QR Codes
POS Terminals
Calendar Year (UPI + Bharat QR)
(Lakhs)
(Lakhs)
2024 100.01
6399.13
2025 114.75
7372.55
Y-o-Y Growth 14.74% 15.21%Annexure - II
Monthly UPI transactions in Maharashtra in FY 2025 – 26
Month UPI Volume % Increase in
(FY 2025-26) (in Crore) UPI Volume
December 234.93 09.13%
November 215.28 00.30%
October 214.63 08.76%
September 197.34 -00.61%
August 198.55 04.21%
July 190.54 09.39%
June 174.18 -29.30%
May 246.38 03.42%
April 238.23 -
Monthly UPI transactions in Madhya Pradesh in FY 2025 – 26
Month UPI Volume % Increase in
(FY 2025-26) (in Crore) UPI Volume
December 46.84 05.28%
November 44.49 -01.54%
October 45.19 07.45%
September 42.05 -03.57%
August 43.61 03.63%
July 42.08 08.79%
June 38.68 -43.80%
May 68.83 19.49%
April 57.60
*****