Digital Payments Volume Surged 35% In FY25, UPI Accounted For 81% Share: Sitharaman

(MENAFN- KNN India) New Delhi, Mar 17 (KNN) Digital payment transactions in India have witnessed strong growth in recent years, driven by coordinated efforts of the government, the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI), Finance Minister Nirmala Sitharaman informed the Lok Sabha.

During FY 2024–25, total retail digital payment transactions reached 22,167.90 crore in volume, registering a 35.04 percent growth, while the value stood at Rs 849.12 lakh crore, growing 18.04 percent.

The Unified Payments Interface (UPI) accounted for 81 percent of total transactions, emerging as the world's largest real-time retail payment system.

The growth has been supported by factors such as rising smartphone penetration, Aadhaar-enabled authentication, e-KYC, increased financial inclusion, and expansion of merchant acceptance infrastructure across urban and rural areas. Digital public infrastructure has further enabled interoperability and simplified onboarding, boosting adoption.

Sitharaman said that government initiatives such as the Incentive Scheme for Promotion of Digital Payments and the Payment Infrastructure Development Fund (PIDF) have also contributed to expansion in digital payment ecosystem.

Under PIDF, around 5.80 crore digital touchpoints and 56.86 crore QR codes have been deployed nationwide.

However, the rise in digital payments has brought challenges including cybersecurity risks, digital literacy gaps, and network issues, though no state-specific concerns have been reported for Maharashtra or Andhra Pradesh.

To tackle digital financial fraud, multiple safeguards have been implemented, including device binding, two-factor authentication via PIN, transaction limits, and AI/ML-based fraud monitoring systems deployed by NPCI.

For reporting cyber fraud, the National Cybercrime Reporting Portal and helpline number 1930, launched by the Ministry of Home Affairs, are available to citizens.

Additionally, the Department of Telecommunications has introduced the Digital Intelligence Platform (DIP) and 'Chakshu' facility to report suspicious communications via calls, SMS or messaging apps.

To improve access in low-connectivity areas, NPCI has launched solutions like UPI 123PAY and Hello UPI, enabling feature-phone and voice-based transactions.

The government has also focused on financial literacy, with 2,421 Centres for Financial Literacy (CFLs) operational as of March 2025, alongside annual Financial Literacy Week campaigns since 2016.

These measures aim to strengthen digital payment adoption while ensuring safety, accessibility and financial awareness across the country.

(KNN Bureau)

MENAFN17032026000155011030ID1110873876