Digital Payments Dominate 99.7% of Transaction Volume in 2024: RBI Report
Digital payments accounted for 99.7% of all transaction volume and 97.5% by value in India’s payment system during 2024, with this dominance continuing through the first half of 2025, according to the Reserve Bank of India’s latest report.
Key Takeaways
- Digital payments reached 99.7% of transaction volume in 2024
- UPI dominated with 85% volume share in H1 2025
- Total payment volume grew from 3,248 crore (2019) to 20,849 crore (2024)
Remarkable Growth in Payment Ecosystem
The RBI’s half-yearly Payment System Report (June 2025) highlighted the payments ecosystem’s remarkable growth in recent years. India’s payment landscape includes both paper-based instruments like cheques and various digital payment systems.
Digital Payment Systems
The digital payment infrastructure encompasses multiple platforms including , IMPS, RTGS, NACH, debit and credit cards, prepaid payment instruments, and the widely-used UPI system.
Decline of Paper-Based Payments
The report showed increasing trends across all payment categories except paper-based instruments. Cheques now account for just 2.3% of total transactions by value, indicating a significant shift toward digital alternatives.
Explosive Transaction Growth
Payment transactions demonstrated massive growth between 2019 and 2024. Volume increased from 3,248 crore to 20,849 crore, while value rose from ₹1,775 lakh crore to ₹2,830 lakh crore during this period.
Recent Performance
In the first half of 2025 alone, transaction volume reached 12,549 crore amounting to ₹1,572 lakh crore, showing continued strong performance in the payments sector.
UPI’s Dominant Position
UPI (Unified Payments Interface) captured the largest market share at 85% of transaction volume during H1 2025, though it accounted for a more modest 9% share in terms of value during the same period.
