With UPI generating a 41.7% volume surge, digital payments in India are booming. In FY25, the RBI is boosting innovation, security, and global reach.

The digital payments landscape in India experienced significant growth, with a 34.8% increase in the number of transactions and a 17.9% rise in their total value from FY2024 to 2025, as reported by the Reserve Bank of India's FY25 Annual Report.

The quantity and value of retail digital payments surged by 34.9% and 16.1%, respectively. This growth was largely fueled by the Unified Payments Interface (UPI), which recorded a 30.3% rise in value and a 41.7% increase in volume. UPI accounted for 84% of all retail digital payment transactions.

The value and the number of Real-Time Gross Settlement (RTGS) transactions rose by 17.8% and 12%, respectively, while the value and the volume of National Electronic Funds Transfer (NEFT) transactions grew by 13.4% and 32.4%, respectively.

According to the study, the percentage of digital transactions in all non-cash retail purchases was 99.9%, which was marginally higher than the 99.8% recorded in FY24.

The RBI introduced a number of UPI improvements to increase accessibility and convenience. These consist of auto-replenishment for UPI Lite, FASTag, and NCMC funds, Delegated Payments, UPI usage at Cash Deposit Machines, and PPI access via third-party UPI applications. All categories saw an increase in transaction limits, including a ₹5 lakh ceiling on tax payments made through UPI.

By permitting QR-based transactions in nations including France, Nepal, Mauritius, and Sri Lanka, RBI further increased UPI's global reach. It became a part of Project Nexus, a BIS-led effort to connect ASEAN countries' quick payment systems with India's UPI.

By adding additional companies to the Central Payments Fraud Information Registry (CPFIR) and suggesting specialized domains like .bank.in and .fin.in to combat phishing, the central bank strengthened the security of digital payments.

In order to increase accessibility for people with impairments, guidelines were also released.

The worth of the digital rupee circulated increased by 334% from FY24 to FY25, climbing from ₹234.04 crore to ₹1,016.46 crore.