**Executive Summary**
This document addresses Unstarred Question No. 1168 in Lok Sabha regarding the success of Unified Payments Interface (UPI). The response outlines UPI's performance relative to other global payment systems, initiatives to promote UPI adoption, and developments related to RuPay and UPI integration, particularly in Tamil Nadu. The response references data as of October 31, 2025, and FY 2024-25.
**Key Points / Main Content**
* **UPI Performance:**
* The International Monetary Fund (IMF) recognizes UPI as the world's largest retail fast-payment system by transaction volume.
* ACI Worldwide report (2024) indicates UPI has approximately 49% share in the global real-time payment system transaction volume.
* Annexure-I details the status of UPI relative to other international real-time payment platforms.
* **UPI Adoption Initiatives:**
* Government, RBI, and NPCI have implemented various initiatives to promote UPI adoption among small-scale merchants.
* These include incentive schemes for low-value BHIM-UPI transactions and the Payments Infrastructure Development Fund (PIDF).
* PIDF provides grant support to banks and fintechs for deploying digital payment infrastructure (POS Terminals and QR codes) in tier-3 to 6 centers.
* As of October 31, 2025, approximately 5.45 crore digital touchpoints have been deployed in tier-3 to 6 centers through PIDF.
* As of FY 2024-25, a total of 56.86 crore QR codes were deployed to approximately 6.5 crore merchants.
* **RuPay and UPI Integration:**
* The Government, RBI and NPCI have initiated deepening digital transactions through RuPay and UPI across businesses.
* These include public services, transport and e-commerce platforms on a nationwide basis, including Tamil Nadu.
* **UPI Transactions in Tamil Nadu:**
* UPI transactions originating from RuPay-linked accounts are not separately captured.
* Tamil Nadu contributed 81.20 crore UPI transactions with a value of ₹1.28 lakh crore in October 2025.
**Impact Analysis**
**Merchants (especially small-scale)**
* **Impact:** Increased access to digital payment infrastructure, potentially leading to increased sales and reduced transaction costs.
* **Action Required:** Evaluate the benefits of adopting UPI and other digital payment methods; understand available support and incentive programs.
**Citizens**
* **Impact:** Increased convenience and access to digital payment options, particularly in public services, transport, and e-commerce.
* **Action Required:** Adopt UPI as a payment method.
**Banks and Fintechs**
* **Impact:** Opportunity to expand services and customer base through digital payment solutions; potential access to grant support from the PIDF.
* **Action Required:** Participate in initiatives to promote UPI adoption; evaluate the potential for deploying digital payment infrastructure in Tier-II and Tier-III cities; evaluate the possibilities for cooperation with the PIDF.
Key Entities Referenced
Unified Payments Interface (UPI): A real-time payment system in India that facilitates instant fund transfers between two bank accounts on a mobile platform.
Reserve Bank of India (RBI): The central bank of India, involved in regulating and promoting digital payments.
National Payments Corporation of India (NPCI): An organization that operates retail payments and settlement systems in India, crucial for UPI infrastructure.
RuPay: An Indian multinational financial services and payment service system, involved in deepening digital transactions with UPI.
Payments Infrastructure Development Fund (PIDF): A fund providing grant support to banks and fintechs for deploying digital payment infrastructure, particularly in Tier-3 to 6 centers.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
LOK SABHA
UNSTARRED QUESTION NO. 1168
ANSWERED ON MONDAY, DECEMBER 08, 2025/ AGRAHAYANA 17, 1947 (SAKA)
Success of Unified Payments Interface
1168. SHRI MUKESHKUMAR SHRI P P CHAUDHARY:
CHANDRAKAANT DALAL: SHRI P C MOHAN:
DR. K SUDHAKAR: SHRI SELVAM G:
SMT.SHOBHANABEN SHRI C N ANNADURAI:
MAHENDRASINH BARAIYA: SHRI BIBHU PRASAD TARAI:
SHRI YADUVEER WADIYAR: SHRI SIVMANGAL SINGH
SHRI MAHENDRA SINGH SOLANKY: TOMAR
DR. HEMANG JOSHI:
Will the Minister of FINANCE be pleased to state:
(a) the extent to which Unified Payments Interface (UPI) has surpassed other major
global real-time payment systems/gateways, particularly in terms of transaction
volume;
(b) the detailed comparison illustrating UPI's current status and market share against
other leading international real-time payment platforms;
(c) the total number of new merchants and small businesses onboarded onto the UPI
platform as a direct result of Government initiatives aimed at boosting digital
payments;
(d) the volume and value of UPI transactions made through RuPay linked accounts in
Tamil Nadu;
(e) the key Government schemes and their impact on driving the adoption of UPI among
small scale merchants in the country particularly in the Lok Sabha constituency of
Dewas-Shajapur, Madhya Pradesh and Pali in Rajasthan;
(f) the steps taken to strengthen the digital payments infrastructure in Tier-II and Tier-
III cities especially in Tamil Nadu; and
(g) whether the Government proposes any new initiatives to integrate RuPay and UPI
systems with public services, transport and e-commerce platforms especially in the
State of Tamil Nadu and if so, the details thereof ?Answer
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) & (b) The International Monetary Fund (IMF) report on ‘Growing Retail Digital Payments
(The Value of Interoperability)’ dated June 2025 had recognized Unified Payments Interface (UPI)
as the world’s largest retail fast-payment system (FPS) by transaction volume. Further, as per ACI
Worldwide report on ‘Prime Time for Real-Time’ 2024, UPI has around 49% share in the global
real-time payment system transaction volume.
The detailed comparison illustrating UPI's current status and market share against other leading
international real-time payment platforms is attached as Annexure – I.
(c), (e) & (f) In order to support small scale merchants in adopting digital payment systems
including UPI, various initiatives have been taken up by the Government, Reserve Bank of India
(RBI) and National Payments Corporation of India (NPCI) from time to time. These inter alia,
include incentive scheme for promotion of low value BHIM-UPI transactions, and the Payments
Infrastructure Development Fund (PIDF) which provides grant support to the banks and fintechs
for deployment of digital payment infrastructure (such as POS Terminals and QR codes) in tier-3
to 6 centers. As of October 31, 2025, approximately 5.45 crore digital touch points have been
deployed through PIDF in tier-3 to 6 centers. Further, as of FY 2024-25, a total of 56.86 crore QR
were deployed to approximately 6.5 crore merchants.
(d) NPCI has informed that bifurcation of transactions originated by UPI linked RuPay accounts
is not captured separately. However, Tamil Nadu state has contributed 81.20 crore UPI
transactions with value of ₹ 1.28 lakh crore in October 2025.
(g) The Government, RBI and NPCI have initiated deepening digital transactions through RuPay
and UPI across businesses including public services, transport and e-commerce platforms on a
nationwide basis including the state of Tamil Nadu.
*****Annexure-I
UPI's status against other leading international real-time payment platforms
Transaction Volume % Share of Global real-
Countries
(in Billions) time payment platform
India 129.3 49%
Brazil 37.4 14%
Thailand 20.4 8%
China 17.2 6%
South Korea 9.1 3%
Others 52.8 20%
Total 266.2 100%
Source: ACI Worldwide report on ‘Prime Time for Real-Time’ 2024