UPI User Base Could Exceed 1 Billion, Says RBI Deputy Governor

The Unified Payments Interface (UPI) in India has significant room for growth, according to RBI Deputy Governor T. Rabi Sankar, as per news reports.

Currently serving 400 million active users, UPI could surpass 1 billion users in the coming years.

Digital payments have expanded financial inclusion, transformed business operations, and contributed to economic growth, while efforts continue to strengthen cyber security.

Potential For UPI Expansion

UPI has emerged as the leading digital payment platform in India, processing 81% of retail payment transactions by volume. 

With around 400 million active users today, the RBI sees an opportunity to more than double the user base to over 1 billion. 

The platform’s growth potential is supported by initiatives targeting feature phone users and underserved segments, ensuring broader access across the country.

Impact On Financial Inclusion

The growth of digital payments has changed the financial landscape in India. UPI enables individuals, including small entrepreneurs and homemakers, to securely receive and make payments, supporting micro-businesses and local commerce.

Increased adoption of UPI contributes to greater financial inclusion by simplifying transactions and promoting secure, transparent payments.

Contribution To Economic Growth

According to RBI estimates, a 10% increase in digital payments could add approximately 0.3% to India’s GDP. 

The total value of digital transactions in India rose from ₹2,071 crore in FY 2017-18 to ₹22,831 crore in FY 2024-25, growing at a CAGR of 41%. 

UPI has played a central role in enabling Person-to-Person (P2P) and Person-to-Merchant (P2M) transactions efficiently.

Cyber Security And Safeguards

As UPI adoption rises, the Reserve Bank of India has implemented multiple cyber security measures to curb digital frauds. Tools such as “mule hunter” have been deployed to monitor and restrict fraudulent transactions, enhancing trust and safety in the digital payments ecosystem.

Read More: UPI Records 20.47 Billion Transactions in November 2025: Phone Retains the Leader Board.

Conclusion

UPI continues to shape India’s digital payment landscape, with potential to expand its user base significantly and drive financial inclusion. Sustained adoption, coupled with robust cyber security measures, will be key to realising its full impact on the economy and individual users.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.