UPI Drives 85 Per Cent Of India’s Payment Volumes, RTGS Handles Most High-Value Transfers

India’s payments ecosystem has continued its rapid digital expansion in the second half of 2025, with Unified Payments Interface (UPI) accounting for 85.5 per cent of all payment transaction volumes, while Real Time Gross Settlement (RTGS) has handled 68.6 per cent of the total transaction value, according to the Reserve Bank of India’s latest Payment Systems Report.

The report has pointed out the different roles of retail and wholesale payment systems in the country's financial structure. UPI is the most popular solution for regular retail transactions, while RTGS has proven to be the most secure solution for large transactions between institutions and businesses.

UPI Handles Record Volume

UPI has contributed just 9.5 per cent of total transaction value during H2 2025 despite its overwhelming lead in transaction volumes. RTGS, by contrast, has accounted for only 0.1 per cent of payment volumes but has processed more than two-thirds of the total transaction value. NEFT has held the second-largest share in both transaction volume and value at 3.6 per cent and 14.9 per cent, respectively.

RBI has said this trend reflects the growing use of UPI for low-ticket retail payments, while RTGS continues to process high-value transfers in real time.

Digital Payment Volumes Expanded 33 Times

The RBI report has also shown a broader acceleration in digital payments across the economy. Between 2016 and 2025, digital payment volumes have expanded 33 times, while transaction values have nearly tripled. Over the last five years alone, payment volumes have increased more than fourfold, translating into a compound annual growth rate of 43 per cent in volume and 17 per cent in value.

Total payment transaction volume has risen to 14,270 crore in H2 2025 from 12,549 crore in H1 2025. Total transaction value has increased to Rs 1,643 lakh crore from Rs 1,572 lakh crore during the same period. Digital payments have made up 99.8 per cent of total transaction volumes and 97.8 per cent of transaction values in 2025, according to the report.

UPI has continued to post strong growth in both transaction count and value. The volume of UPI transactions has increased from 3,873 crore in 2021 to 22,828 crore in 2025, while transaction value has risen from Rs 72 lakh crore to Rs 300 lakh crore during the same period.

RBI has said the average ticket size of UPI transactions has declined from Rs 1,848 in 2021 to Rs 1,313 in 2025, indicating rising use for smaller-value transactions.

Growth In NACH And BBPS Transactions

Other retail payment systems have also seen robust growth, RBI report says. National Automated Clearing House (NACH) transactions more than doubled to 742 crore in 2025 from 400 crore in 2021, with the volume of automated recurring payments like utility bills, loan EMIs, and subscriptions rising.

Bharat Bill Payment System (BBPS) transactions have also increased significantly, with the number of transactions increasing by nearly six times from 2021 to 2025.

FAQs

1. Why does UPI have a high transaction volume but lower value share?
   UPI is mainly used for low-value retail payments such as shopping, bill payments and peer-to-peer transfers, resulting in very high transaction counts but lower overall value.

2. What is RTGS mainly used for?
   RTGS is primarily used for high-value fund transfers between businesses, banks and institutions, where transactions are settled individually in real time.

3. What has driven the rise in digital payments in India?
   According to the RBI report, expanding smartphone usage, better digital infrastructure, regulatory support and growing consumer trust have boosted digital payment adoption.