India’s digital payments ecosystem continues to expand rapidly, with the country now processing nearly 77.6 crore digital payment transactions every day, according to the RBI’s Payment System Report for December 2025.
The report highlighted the overwhelming dominance of the Unified Payments Interface (UPI), which accounted for 85.5% of all payment volumes during the second half of 2025. UPI transaction volumes surged to 12,191 crore in H2 2025, compared to 1,530 crore in H1 2021, reflecting the platform’s massive growth and deep integration into daily financial activity.
Over the last decade, India’s digital payment volumes have grown 33 times, driven by increasing adoption of real-time payment systems and declining dependence on cash transactions.
While UPI dominates transaction volumes, the Reserve Bank of India noted that RTGS continues to remain the backbone of high-value transactions. Although RTGS contributed only 0.1% of total transaction volume, it accounted for 68.6% of the total transaction value processed during the period.
The report also revealed major shifts in consumer payment behaviour. Credit card spending rose sharply to ₹23.2 lakh crore in calendar year 2025, compared to ₹8.9 lakh crore in 2021. Private banks further strengthened their position in the segment, increasing their share of outstanding credit cards to 71.1%.
At the same time, debit card usage witnessed a steep decline. Transaction volumes through debit cards dropped 67% between CY2021 and CY2025 as more consumers shifted toward UPI-based payments.
The Bharat Bill Payment System (BBPS) also recorded strong growth, with transaction values increasing more than 16 times in 4 years to reach ₹14.8 lakh crore.
FASTag adoption continued to expand steadily as well. The number of FASTag issuances more than doubled to 11.87 crore, while toll plazas integrated into the network increased to 1,896.
The RBI report further noted that UPI QR-code based payments are now operational in 8 countries, including France, Singapore, and the UAE, highlighting India’s growing efforts to internationalise its digital payments infrastructure.
Meanwhile, cheque usage continued to decline, although the average cheque transaction size increased by 35%, suggesting cheques are increasingly being used mainly for higher-value transactions.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream LinkedIn | The Mainstream Facebook | The Mainstream Youtube | The Mainstream Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.