New Delhi, July 28, 2025: India’s digital payment revolution continues to accelerate, with over 65,000 crore digital transactions valued at ₹12,000 lakh crore recorded in the past six financial years (FY 2019-20 to FY 2024-25), according to data shared by the Ministry of Finance.
This phenomenal growth reflects India’s strong push toward a cashless economy, driven by Unified Payments Interface (UPI), innovations from fintechs, and major government initiatives aimed at boosting digital India adoption, especially in tier-2, tier-3, and rural areas.
The Reserve Bank of India (RBI), in collaboration with the National Payments Corporation of India (NPCI) and banks, has actively supported this transformation. Notably, the Payments Infrastructure Development Fund (PIDF), launched in 2021, has facilitated the deployment of over 4.77 crore digital touchpoints as of May 31, 2025.
RBI’s Digital Payments Index Reaches 465.33
To monitor the pace of digitization, the RBI introduced the Digital Payments Index (DPI), with 2018 as the base year (Index = 100). The latest DPI for September 2024 stands at 465.33, highlighting significant and sustained progress in the country’s digital payment infrastructure.
Empowering MSMEs & Small Merchants
To further enable small merchants and MSMEs, the Government has rolled out initiatives such as:
- Incentives for low-value BHIM-UPI transactions
- Trade Receivables Discounting System (TReDS) for invoice financing
- Zero MDR (Merchant Discount Rate) for debit card and UPI transactions
These steps have simplified the onboarding process for digital payments and expanded market access for smaller businesses.
Financial Inclusion Through Digital Footprint
Digital payments are reshaping the financial inclusion landscape, especially for underserved populations. Platforms like UPI have enabled even street vendors and rural citizens to accept digital payments, create financial transaction trails, and become credit-visible to banks.
Such alternative credit scoring models are helping previously unbanked users access loans and financial products, thereby strengthening formal economic participation.
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