India’s digital payment landscape has seen remarkable growth, with total digital payment transactions soaring by 46% from 8,839 crore in FY 2021-22 to 18,737 crore in FY 2023-24. The Unified Payments Interface (UPI) has emerged as the dominant force, accounting for over 70% of total digital transactions in the last fiscal year. UPI transactions alone surged at a CAGR of 69%, rising from 4,597 crore in FY 2021-22 to 13,116 crore in FY 2023-24.
According to the Ministry of Finance, the Incentive Scheme for the Promotion of RuPay Debit Cards and Low-Value BHIM-UPI Person-to-Merchant (P2M) Transactions has been a key driver in this expansion, significantly boosting digital payment adoption across the country. Strengthening digital infrastructure, including QR codes, POS terminals, and Third-Party App Providers (TPAPs), has also played a crucial role in facilitating seamless transactions.
To further accelerate digital adoption, the government has set up the DIGIDHAN Mission, focusing on building a robust digital payments ecosystem. Since FY 2021-22, the number of banks offering digital payments, including UPI services, has grown from 216 to 572, reflecting increased participation in the digital economy. Additionally, the Incentive Scheme for Banks (ISB) portal has been introduced to ensure smooth data collection and promote digital awareness.
India’s digital payment ecosystem has seen continuous growth over the last five years. Total digital payments transactions have grown from 4,370.68 crore in FY 2020-21 to 18,120.82 crore in FY 2024-25 (till January 2025).
Recognizing the impact of digital payments on economic growth, the government continues to take initiatives to enhance financial inclusion, strengthen digital infrastructure, and ensure secure transactions. The collaboration between RBI, NPCI, and financial institutions is driving India’s digital transformation, making transactions more accessible and efficient for millions.
Minister of State for Finance, Pankaj Chaudhary, highlighted these developments in a written reply to Rajya Sabha, emphasizing that India’s journey toward a cashless economy is well on track, with continuous innovation and policy support shaping the future of digital payments.
