New Delhi, March 17: India’s retail digital payment transactions have witnessed rapid growth over the past four financial years, driven by coordinated efforts of the government, the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI), the government informed the Lok Sabha.
In a written reply, Nirmala Sitharaman, Union Minister of Finance, said the total volume of retail digital payments rose from 7,176.90 crore transactions in FY 2021–22 to 22,167.90 crore transactions in FY 2024–25.
During the same period, the value of transactions increased from ₹457.44 lakh crore in FY 2021–22 to ₹849.12 lakh crore in FY 2024–25, reflecting sustained expansion in India’s digital payments ecosystem.
According to the data shared in Parliament, digital payments recorded 58.42 percent growth in volume and 28.41 percent growth in value in FY 2022–23, followed by 44.39 percent and 22.47 percent growth respectively in FY 2023–24. In FY 2024–25, transactions continued to rise with 35.04 percent growth in volume and 18.04 percent growth in value.
Among various digital payment modes, the Unified Payments Interface (UPI) accounted for 81 percent of total retail digital payments in FY 2024–25, making it the largest real-time retail payment system in the world.
The growth of digital payments has been supported by factors such as increasing smartphone penetration, Aadhaar-enabled authentication, e-KYC, expanded financial inclusion, and wider merchant acceptance infrastructure across urban and rural areas. India’s digital public infrastructure has also enabled interoperability and simplified onboarding processes for users.
Government initiatives such as the Incentive Scheme for Promotion of Digital Payments and the Payment Infrastructure Development Fund (PIDF) have further supported the expansion of digital payment systems.
The Finance Minister noted that the rise in digital payments has also brought challenges including cybersecurity risks, digital literacy gaps, network issues and user awareness, though no specific concerns related to Maharashtra and Andhra Pradesh have been reported.
To combat digital financial fraud, the government, RBI and NPCI have implemented several safeguards, including device binding between mobile numbers and devices, two-factor authentication through PIN, daily transaction limits and restrictions on certain use cases. NPCI has also introduced an AI and machine learning-based fraud monitoring system to detect suspicious transactions.
Citizens can report cybercrime incidents, including financial fraud, through the National Cybercrime Reporting Portal and the National Cybercrime Helpline number 1930, launched by the Ministry of Home Affairs.
Additionally, the Department of Telecommunications has introduced the Digital Intelligence Platform (DIP) and the “Chakshu” facility, enabling people to report suspicious communications received through calls, SMS, or WhatsApp.
To improve digital payment infrastructure in rural and remote areas, the PIDF initiative has supported the deployment of about 5.80 crore digital touchpoints and nearly 56.86 crore QR codes across the country.
For users in low-connectivity regions and feature phone users, NPCI has introduced UPI 123PAY, which allows payments through interactive voice response (IVR) and sound-based proximity payments, and Hello UPI, which enables conversational digital payments.
The government has also focused on improving financial literacy. As of March 31, 2025, a total of 2,421 Centres for Financial Literacy (CFLs) have been established across India, each covering three blocks. In addition, Financial Literacy Week, observed annually since 2016, continues to promote awareness about safe and responsible use of digital financial services.
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