India’s Unified Payment Interface (UPI) has witnessed unprecedented growth over the past eight years, Minister of State for Finance Pankaj Chaudhary told the Lok Sabha in a written reply on August 11, 2025.
UPI transactions rose from 920 million in 2017-18 to 185.87 billion in 2024-25, registering a compounded annual growth rate (CAGR) of 114%.
The transaction value also skyrocketed from ₹1.10 lakh crore to ₹261 lakh crore during the same period.
In July 2025, UPI clocked a record 19.46 billion transactions in a single month, the highest ever since its launch. Chaudhary attributed the growth to rising merchant and consumer adoption, as well as the ease of peer-to-peer and peer-to-merchant payments.
Digital Payments Witness Strong Growth
The overall volume of digital payment transactions in India also surged alongside UPI adoption. Digital payments rose from 20.71 billion transactions in 2017-18 to 228.31 billion in 2024-25, growing at a CAGR of 41%.
The combined value of these transactions increased from ₹1,962 lakh crore to ₹3,509 lakh crore over the same period. This includes multiple modes—net banking, mobile banking, card payments, and other digital channels.
The Reserve Bank of India (RBI) and the government have taken several measures to strengthen the digital payments ecosystem. These include:
- Promoting new technology adoption
- Enhancing banking sector governance
- Expanding financial inclusion and doorstep banking
- Improving credit discipline
- Bringing cooperative banks under regulation
- Strengthening settlement systems and dispute resolution mechanisms
- Increasing security provisions to combat online fraud and data breaches
Public Sector Bank Reforms
Public sector banks have implemented governance and operational reforms in recent years. Top executives are now appointed through the Financial Services Institutions Bureau, and some banks have introduced non-executive chairmen.
The candidate pool for leadership roles has expanded, and performance-linked extensions for managing directors are in place. Under the Enhanced Access and Service Excellence (EASE) program, banks have improved governance, risk management, technology adoption, and HR practices.
To boost credit flow to micro, small, and medium enterprises (MSMEs), the government has launched the Mutual Credit Guarantee Scheme and the Emergency Credit Line Guarantee Scheme.
Following the 2024-25 Union Budget, a Credit Assessment Model was introduced, using digitally verifiable information and computerised appraisal systems to finance both existing and new MSME borrowers.
Under the Credit Guarantee Fund Trust for Micro and Small Enterprises, the Ministry of MSME now guarantees up to 85% cover for loans up to ₹10 crore issued by eligible institutions.
The surge in UPI and digital payments has gone hand in hand with banking sector reforms and targeted credit schemes, creating a more secure, inclusive, and technology-driven financial system.
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