Key Points
- UPI accounts for 81 per cent of India’s 22,168 crore retail digital transactions in 2024-25
- Government deployed 5.80 crore digital payment touch points under rural infrastructure scheme
- 2,421 financial literacy centres now operate across India covering three blocks each
The Unified Payments Interface now accounts for 81 per cent of all retail digital payment transactions in India, Finance Minister Nirmala Sitharaman told the Lok Sabha on Monday. Total retail digital payments reached 22,168 crore transactions worth ₹849 lakh crore in the financial year 2024-25, marking a 35 per cent increase in volume over the previous year.
The data confirms UPI’s position as the world’s largest real-time retail payment system. For the estimated 300 million Indians who use UPI daily, the growth reflects how deeply digital payments have embedded themselves into everyday commerce; from vegetable vendors in rural markets to large retail chains in metropolitan centres.
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Sitharaman attributed the expansion to coordinated efforts between the Centre, the Reserve Bank of India and the National Payments Corporation of India. The minister was responding to questions on the state of digital payment infrastructure in the country.
Digital payment growth slows but remains strong
While transaction volumes continue to rise, the rate of growth has moderated from the peaks seen in earlier years. Volume growth stood at 58 per cent in 2022-23, fell to 44 per cent in 2023-24 and dropped further to 35 per cent in 2024-25. Value growth followed a similar pattern, declining from 28 per cent to 22 per cent to 18 per cent over the same period.
The slowdown suggests digital payments are approaching maturity in urban areas, where smartphone penetration and merchant acceptance are already high. Future growth will likely depend on deeper adoption in semi-urban and rural regions where infrastructure remains uneven.
Several factors have driven the overall expansion, according to the government’s statement. These include widespread smartphone ownership, Aadhaar-enabled authentication, electronic know-your-customer verification, which allows banks to verify customer identity digitally without physical documents and the rapid growth of merchant acceptance points.
To address the urban-rural divide in digital payment access, RBI established the Payment Infrastructure Development Fund. The scheme has deployed approximately 5.80 crore digital touch points and 56.86 crore QR codes; the machine-readable squares that allow customers to make payments by scanning with their phones; across the country.
NPCI has also launched services specifically designed for areas with poor internet connectivity and for users who own basic feature phones rather than smartphones. UPI 123PAY enables payments through interactive voice response, a system where users navigate menus by pressing phone buttons, and through sound-based proximity payments. Hello UPI allows users to make payments through voice commands in a conversational format.
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The government has established 2,421 Centres for Financial Literacy across the country as of 31 March 2025. Each centre covers three administrative blocks, providing training on digital payments and basic financial services to citizens unfamiliar with these systems.
Fraud prevention measures intensified
The growth in digital payments has brought corresponding challenges around cybersecurity and fraud. The government acknowledged risks including cyber attacks, gaps in digital literacy and network reliability issues, though Sitharaman noted no specific challenges had been reported from Maharashtra or Andhra Pradesh in response to a direct question.
Multiple agencies have implemented fraud prevention measures. Banks now use device binding, a security feature that links a customer’s registered mobile number to their specific handset, making it harder for fraudsters to access accounts from unauthorised devices. Two-factor authentication through PIN verification and daily transaction limits provide additional layers of protection.
NPCI provides banks with an artificial intelligence and machine learning-based fraud monitoring solution. The system, which uses algorithms trained to recognise suspicious transaction patterns, generates alerts and can automatically decline transactions that appear fraudulent. RBI and banks have conducted awareness campaigns through SMS, radio and other channels to educate users about common fraud tactics.
The Ministry of Home Affairs has established the National Cybercrime Reporting Portal at cybercrime.gov.in and a dedicated helpline at 1930 for citizens to report cyber incidents including financial fraud. The Department of Telecommunications launched the Digital Intelligence Platform and a facility called Chakshu, which allows citizens to report suspected fraudulent communications received through calls, SMS or WhatsApp.
The government did not provide segment-wise breakdowns showing which demographic or geographic groups contribute most to digital payment volumes. Sitharaman stated that such specific data is not maintained.
Your Questions, Answered
How many digital payment transactions occurred in India in 2024-25?
India recorded 22,168 crore retail digital payment transactions worth ₹849 lakh crore in 2024-25, according to data presented by Finance Minister Sitharaman in the Lok Sabha.
What percentage of digital payments in India use UPI?
UPI accounts for 81 per cent of all retail digital payment transactions in India as of 2024-25, making it the world’s largest real-time retail payment system.
How can citizens report digital payment fraud in India?
Citizens can report cyber fraud through the National Cybercrime Reporting Portal at cybercrime.gov.in or by calling the helpline 1930. The Chakshu facility allows reporting of suspicious calls, SMS or WhatsApp messages.
What is UPI 123PAY and who is it designed for?
UPI 123PAY is a service launched by NPCI for users in low connectivity areas and feature phone owners. It enables payments through interactive voice response and sound-based proximity payments without requiring a smartphone or internet connection.