UPI Led India’s Payment Volumes in CY 2025 While RTGS Accounted for Most Transaction Value

India’s digital payments ecosystem continued to expand during CY 2025, with different payment systems serving distinct roles across the economy. 

Data from the Reserve Bank of India’s Payments System Report for December 2025 showed that UPI remained the primary channel for retail transactions by volume, whereas RTGS dominated in terms of transaction value.

UPI Accounted for the Largest Share of Payment Volumes

Unified Payments Interface (UPI) processed 85.5% of India’s total payment transaction volumes during the second half of CY 2025. However, despite handling the majority of transactions, UPI represented only 9.5% of the overall transaction value.

The numbers indicate that UPI continued to be widely used for routine retail payments, including merchant purchases, peer-to-peer transfers and smaller day-to-day transactions. Its high transaction count reflects its role in supporting frequent, lower-value digital payments across consumers and businesses.

RTGS Dominated High-Value Transactions

Real Time Gross Settlement (RTGS) contributed only 0.1% of total payment volumes but accounted for 68.6% of the total transaction value during the same period.

The contrast highlights RTGS’s importance in processing large-value transfers, particularly for institutions, corporates and high-ticket financial settlements. While the number of transactions remained relatively limited, the system continued to handle a significant share of the value flowing through India’s payments infrastructure.

NEFT Maintained a Mid-Segment Role

National Electronic Funds Transfer (NEFT) occupied an intermediate position in the payments ecosystem. It represented 3.6% of total transaction volumes and 14.9% of overall transaction value.

The data suggests that NEFT continued to be used across a broad range of transaction sizes, balancing retail and business requirements. Its settlement structure and accessibility may have supported its continued relevance alongside faster payment systems.

Prepaid Payment Instruments Had Limited Value Share

Prepaid Payment Instruments (PPIs), including digital wallets and prepaid cards, also accounted for 3.6% of transaction volumes. However, they contributed only 0.1% of the total transaction value.

This distribution indicates that PPIs remained primarily associated with smaller-value transactions, similar to several retail-focused payment methods operating within the broader digital payments ecosystem.

Digital Payment Volumes Continued to Expand

According to the report, India’s total payment transaction volumes increased from 6,437 crore in CY 2021 to 26,819 crore in CY 2025, reflecting a compound annual growth rate (CAGR) of 42.9%.

During the same period, the total value of transactions rose from ₹1,741 lakh crore to ₹3,215 lakh crore, recording a CAGR of 16.6%.

The divergence between growth in transaction volume and transaction value suggests rising adoption of digital payments for smaller-ticket transactions, particularly through platforms designed for high-frequency usage.

Read More: RBI Imposes Penalty on Aurangabad District Central Co-operative Bank Over Credit Reporting Lapses.

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Conclusion

The RBI data for CY 2025 reflected the differentiated roles played by India’s major payment systems. UPI continued to dominate retail payment activity by volume, while RTGS remained central to high-value settlements. NEFT and PPIs also retained distinct positions within the ecosystem, serving a range of transaction requirements across individuals and institutions.

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