India emerged as a global leader in digital payments with the Unified Payments Interface (UPI) processing almost half—48.5 per cent—of the world's real-time digital payment transactions by volume for 2024–25. This was disclosed by Reserve Bank of India's (RBI) Annual Report for March 31, 2025.
Surge in Digital Payments
Total digital transactions in India, as per the report, saw strong growth of 34.8 per cent in volume and 17.9 per cent in value during 2024–25. This was due to the fast expansion and adoption of UPI, reflecting India's shift towards a cashless and more inclusive payments ecosystem.
This growth was attributed to the use of smartphones, regulation, and internet penetration, even in remote areas of the country. UPI alone has changed how Indians pay by enabling instant, seamless, real-time money transfers among banks with the help of a smartphone app.
Global Benchmark: UPI Leadership
India's UPI is now far ahead of other global real-time payment systems. ACI Worldwide's 2024 report, as cited in the RBI annual report, testifies to the share of UPI in 48.5 per cent of worldwide real-time payment volume—a record share given the threat posed by entrenched systems like the United Kingdom's Faster Payments and Brazil's PIX.
The RBI strategic efforts, as part of the "Payments Vision 2025", played a key role in establishing the global presence of UPI. These efforts involved interoperability enhancements, user-focused innovations such as delegated payments, and collaborations with other nations for cross-border applications.
Delegated Payments and Accessibility
To facilitate further usage, RBI came up with features like "Delegated Payments," where you can authorise someone else to make payments from your account up to a specified limit. This feature was brought out with the idea of incorporating technology to the less advanced users while ensuring security and control while handling transactions.
The expansion of financial inclusion, the central bank required all providers of payment systems to revisit and improve access for persons with disabilities. The action ensures digital payment instruments accessible and used by everyone in society.
Infrastructure and Prevention of Fraud
Against the backdrop of growth of electronic payments and ensuing risks, RBI standardised the fraud reporting mechanism. The Central Payments Fraud Information Registry (CPFIR) is now spread to the upper tiers of banks so that the fraud can be monitored at a high speed and large scale.
In a bid to combat phishing and fake payment links, RBI released the notion of a single internet domain—' bank.in'—for Indian banks. The same is being proposed for non-banking finance companies as well under the 'fin.in' domain. This action is targeted to inject greater confidence among the users online.
Cross-Border Push and Strategic Collaborations
India's participation in Project Nexus—a multilateral initiative involving countries like Malaysia, Singapore, the Philippines, and Thailand—reflects the international recognition of UPI's potential. This project aims at facilitate fast payment systems across nations, enabling instant cross-border payments. On the other hand, the RBI's push for using the Indian rupee in global transactions and simplifying regulatory frameworks aims to extend the reach of Indian payment systems even further.
Sustained Focus on Financial Inclusion
The RBI Financial Inclusion Index rose from 60.1 in March 2023 to 64.2 in March 2024, reflecting higher intensity and improved financial integration. Rise in the usage sub-index largely reflects higher penetration of digital payments in everyday life. Programs such as the Financial Literacy Week 2025 were focused on making women more sensitive to financial products, highlighting the promise of digital payments in ushering prosperity.
India's leadership in global real-time payments is the result of policy rigidity, technological advancements, and infrastructure upgrades. With almost half of global digital payment transactions being done through UPI, India has established a global benchmark. With new features, greater security, seamlessness and cross-border initiatives unfolding, India will define the future of digital finance not only in India but globally.
