India’s Digital payments of 650,000 million transactions worth more than $150 trillion USD in last six fiscals

India's digital payment system has transformed the financial landscape, enabling over 650,000 million transactions worth $150 trillion USD between FY20 and FY25. Accelerated by the pandemic, digital payments are now widely accepted, with UPI leading as the world’s largest real-time payment system. The government, alongside RBI, NPCI, and fintech, is expanding access in rural and tier-II/III cities. Initiatives like the PIDF have enhanced infrastructure, boosting financial inclusion and access to formal credit, ensuring a stronger and more inclusive economic future.

India's digital payment environment has grown a lot and is now an important part of the country's efforts to make sure everyone has access to money. The number of digital transactions has gone through the roof in the last six financial years. Between FY20 and FY25, over 650,000 million transactions worth more than $150 trillion USD were handled. In a written answer to the Lok Sabha on July 28, Pankaj Chaudhary, Minister of State for Finance, talked about this huge rise.

During the pandemic, when contactless transactions were very important, the move towards digital transfers sped up. This quick growth has not only changed how people do business, but it also shows that digital payments are accepted by a wide range of consumers and parts of the country.

The government wants to speed up the digital revolution even more by putting digital payment systems in more small towns and rural areas, especially in tier-II and tier-III cities. Key players such as the Reserve Bank of India (RBI), the National Payments Corporation of India (NPCI), fintech companies, banks, and state governments are working together to make sure that digital payments continue to become more popular.

One of the most important effects of this change is that it has made it easier to get official credit. More people are now part of the formal financial system thanks to digital payments. This has made economic engagement easier and increased financial inclusion. The minister said that programs like the Payments facilities Development Fund (PIDF), which was started by the RBI in 2021, have helped improve the facilities for digital payments in tier-III to tier-VI cities and in places like the North-East and Jammu and Kashmir.

The Unified Payments Interface (UPI), which is now the world's best way for consumers to make payments in real time, is India's biggest step forward in digital payments. UPI is almost at the point where it will have more daily transactions than Visa. This would make it the biggest tool for settling retail payments between banks in the world. Just on June 1, UPI handled 644 million transactions. The next day, it handled 650 million transactions, showing how quickly it has grown and become famous.

India's shift to digital payments isn't just about making things easier; it's also a big change in how people use the banking system. The country is paving the way for a more inclusive and strong economic future by closing gaps in financial access and making deals go more smoothly.