Unified Payments Interface (UPI) accounts for 85% of payment volumes: Reserve Bank of India (RBI)’s payment system report
- IBEF
- October 24, 2025
Unified Payments Interface (UPI) continued to drive India's digital payments ecosystem in H1 of CY25, accounting for 85% of total payment volumes, according to data from the Payment System Report released on Thursday by the Reserve Bank of India (RBI). However, in terms of value, UPI contributed just 9%, reflecting its dominance in small-ticket transactions. UPI has emerged as the most widely used retail fast payment system (FPS) in India due to its efficiency, 24/7 availability, and ease of use. The volume of UPI transactions surged from 10.79 billion in CY19 to 172.21 billion in CY24. The total value of these transactions rose from Rs. 18.4 trillion (US$ 209.8 billion) in CY19 to Rs. 246.8 trillion (US$ 2.8 trillion) in CY24. In H1 CY25, UPI transactions totalled 106.37 billion, amounting to Rs. 143.3 trillion (US$ 1.6 trillion). The lower average ticket size indicates that UPI is primarily used for small-value transactions.
Meanwhile, the real-time gross settlement (RTGS) system, mainly used for high-value transfers, accounted for the largest share of transaction value at 69% but represented only 0.1% of overall volumes. With a minimum transaction threshold of Rs. 2 lakh (US$ 2,280.9), RTGS remains the preferred mode for wholesale payments. At the same time, UPI's simplicity continues to drive a massive number of retail transactions nationwide.
RTGS transactions recorded a compounded annual growth rate of 13.7% in volume and 13.78% in value between 2020-21 and 2024-25, according to RBI data. By CY24, transactions conducted outside business hours (18:00-08:00) accounted for 19% of the total volume and 16% of the total value, reflecting the growing adoption of the 24/7/365 RTGS system. "RTGS transactions are predominantly customer transactions, accounting for over 99% of volume and 89% of value. Customer transactions include all transactions initiated by the remitting bank's clients, comprising both retail and corporate transactions," the RBI report said. The report also observed that while the total volume and value of RTGS transactions have increased over the years, the average ticket size has fluctuated. A decline in average ticket size between CY11 and CY15 was followed by growth from CY15 to CY18. After CY19, the average ticket size sharply declined, a trend that continued through CY22. Since then, however, it has been on an upward trajectory. Roughly 75% of customer RTGS transactions fall within the Rs. 2 lakh (US$ 2,280.9) to Rs. 10 lakh (US$ 11,404.5) range, indicating relatively lower ticket sizes. In contrast, interbank transactions are generally larger, with over half valued between Rs. 10 lakh (US$ 11,404.5) and Rs. 2.5 crore (US$ 285,095).
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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