UPI leads in payment volume, RTGS value; debit card deals dip, Pg17.

Key Highlights:

• Total payment transactions grew from 3,248 crore (CY 2019) to 20,849 crore (CY 2024).
• Value of transactions rose from ₹1,775 lakh crore to ₹2,830 lakh crore in the same period.
• UPI transactions alone increased from 1,079 crore (CY 2019) to 17,221 crore (CY 2024) — a 16x rise.
• Digital payments now account for 99.7% of total transactions by volume and 97.5% by value.
• NEFT and RTGS transactions also saw significant increases, while debit card use declined.

Detailed Insights:

• UPI Dominance:
  • UPI’s transaction value surged from ₹246.8 lakh crore in CY24 to ₹490.5 crore transactions worth ₹237 lakh crore in just the first half of CY25.
  • Indicates UPI’s shift from peer-to-peer transfers to widespread use in small business payments and retail transactions.
• NEFT Growth:
  • NEFT volumes more than tripled, from 262.2 crore (CY19) to 926.8 crore (CY24).
  • Transaction value nearly doubled, from ₹232.9 lakh crore to ₹432.8 lakh crore.
• RTGS Expansion:
  • RTGS volume grew from 14.8 crore (CY19) to 29.5 crore (CY24), with value increasing from ₹1,388.7 lakh crore to ₹1,938.2 lakh crore.
  • Reflects rising corporate and inter-bank payments activity.
• Debit Cards Decline:
  • Debit card transactions dropped from 495.32 crore (CY19) to 173.8 crore (CY24) in volume, and from ₹8.63 lakh crore to ₹5.15 lakh crore in value.
  • Indicates migration from card-based to mobile-based digital payment modes.
• Prepaid and Wallet Transactions:
  • PPI (Prepaid Payment Instruments) usage increased modestly to 698.9 crore transactions in CY24, showing stable adoption for low-value digital payments.

Scientific/Technical Concepts Involved:

• UPI (Unified Payments Interface): Real-time interbank transfer system enabling seamless digital payments via smartphones.
• NEFT/RTGS: RBI-managed centralized electronic fund transfer systems for high-value transactions.
• PPI (Prepaid Payment Instruments): Digital wallets or cards used for low-value payments and e-commerce.