Digital Payments Account for 99.7% of Transactions Volume in 2024: RBI Report

India’s shift toward a cashless economy has reached new heights, with digital payment transactions comprising 99.7% of total transaction volume and 97.5% of total value in 2024, the Reserve Bank of India (RBI) said in its half-yearly Payment System Report, June 2025. 

The trend continued through the first half of 2025, reaffirming India’s position as one of the world’s fastest-growing digital payments markets.

Digital Systems Dominate Payment Landscape

The RBI attributed the growth to the rapid adoption of systems such as Unified Payments Interface (UPI), National Electronic Funds Transfer (NEFT), Immediate Payment Service (IMPS), and Real Time Gross Settlement (RTGS).

The total number of payment transactions surged from 3,248 crore in 2019 to 20,849 crore in 2024, while the value increased from ₹1,775 lakh crore to ₹2,830 lakh crore during the same period. In the first half of 2025 alone, 12,549 crore transactions worth ₹1,572 lakh crore were recorded.

In contrast, paper-based instruments like cheques have continued to decline, now accounting for just 2.3% of total transaction value.

UPI Leads by Volume, RTGS by Value

UPI emerged as the most dominant retail payment platform, accounting for 85% of all payment transactions by volume in H1 2025, though it represented only 9% of the total transaction value due to its smaller ticket sizes.

Conversely, RTGS, which caters to large-value transactions, contributed 69% of total payment value but only 0.1% of total volume. “RTGS, with a minimum transfer limit of ₹2 lakh, handles fewer but significantly higher-value transactions,” the RBI report noted.

UPI volumes jumped to 17,221 crore transactions in 2024, up from 1,079 crore in 2019, while the total transaction value rose from ₹18.4 lakh crore to ₹246.8 lakh crore over the same period. In H1 2025, UPI processed 10,637 crore transactions worth ₹143.3 lakh crore.

Card Transactions and Shifting Trends

Credit card usage also surged, with transaction volumes rising from 208.7 crore in 2019 to 447.2 crore in 2024, and transaction value climbing to ₹20.4 lakh crore. Private sector banks dominated the segment, expanding their market share from 65.8% in 2020 to 70.8% in 2025, while foreign banks saw their share decline sharply.

Debit card transactions, meanwhile, continued to fall in both value and volume, as consumers increasingly favoured UPI and other digital wallets for small-value payments.

Read More: UPI Dominates Digital Payments, Hits 84% Share in FY25!

Conclusion

The RBI report highlights India’s remarkable transformation into a digital-first payment economy, led by UPI and supported by innovative banking and fintech partnerships. With nearly all transactions now digital, the next challenge lies in enhancing cybersecurity and ensuring inclusion across rural and low-income segments.

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