Summary of this article
UPI transactions surged from 920 million to 185.87 billion
Digital payments rose to 228.31 billion transactions in 2024-25
Government, RBI reforms boosted payments and MSME credit
Unified Payment Interface (UPI) transactions grew tremendously in the last eight years, Minister of State for Finance Pankaj Chaudhary said in a written reply to a question in Lok Sabha on August 11, 2025. In 2017-18, UPI accounted for 920 million transactions. In 2024-25, this grew to 185.87 billion transactions at a compounded annual growth rate (CAGR) of 114 per cent. The transaction value also grew from Rs 1.10 lakh crore to Rs 261 lakh crore over the same period, he said.
In July 2025, UPI clocked more than 19.46 billion transactions in one month, the highest ever monthly volume since its inception. This has been fuelled by increased acceptance by merchants and users and ease of sending money from individual to individual (peer-to-peer) and also from individual to merchant (peer-to-merchant).
Total Digital Payments on an Upswing
Volumes of digital payments in India have increased with the growth of UPI. Digital payment transactions totalled 20.71 billion in 2017-18 and 228.31 billion in 2024-25, at a CAGRh of 41 per cent. The combined value of these payments went up from Rs 1,962 lakh crore to Rs 3,509 lakh crore over this time.
These include different modes of digital payments, such as Netbanking, mobile banking, card payments and other digital channels.
Policy Steps to Facilitate Growth
The Reserve Bank of India (RBI) and the government have taken a number of steps to strengthen the digital payments ecosystem. These include promoting new technology adoption, enhancing banking sector governance, financial inclusion, doorstep banking, improving credit discipline, and bringing cooperative banks under regulation.
Other initiatives have aimed at enhancing settlement systems and easing disputes related to transactions. Efforts have also been made in increasing security provisions to deal with threats, such as online fraud and data breaches.
Public Sector Bank Reforms
Public sector banks have instituted governance and operational changes across recent years. Top executives are now chosen through the Financial Services Institutions Bureau, and non-executive chairmen have been instituted in certain banks. The set of qualified candidates for top slots has been expanded, and performance-linked extensions for managing directors have been instituted.
The reforms under the Enhanced Access and Service Excellence (EASE) have also been undertaken to improve governance, risk management, technology uptake and human resource practices in public sector banks.
MSME Lending Support
Measures have been taken to enhance the flow of credit to micro, small and medium enterprises (MSMEs). The Mutual Credit Guarantee Scheme and Emergency Credit Line Guarantee Scheme have been launched to help lend to them.
Following the 2024-25 Union Budget, a Credit Assessment Model was launched, relying on digitally verifiable information and computerised loan appraisal mechanisms to finance existing and new MSME borrowers. In the Credit Guarantee Fund Trust for Micro and Small Enterprises, the Ministry of MSME guarantees up to 85 per cent cover for loans up to Rs 10 crore provided by eligible institutions.
A Strong Digital Payments Ecosystem
Incidentally, the growth in UPI transactions and overall digital payments has accompanied bank reforms and targeted credit schemes.
