Over the past decade, India has seen a remarkable surge in digital payments. Retail transactions have skyrocketed from 162 crore in 2012-13 to over 16,416 crore in 2023-24, a nearly 100-fold increase. Digital transactions surged 94 times in volume and 3.5 times in value between 2013 and 2024, with UPI leading the charge. Despite advancements, cross-border payments still face challenges. India remains a top recipient of global remittances, with efforts underway to reduce costs and enhance efficiency, reflecting the country's technological progress in the digital payments realm.
India has experienced a phenomenal surge in digital transactions over the past decade, with the retail digital payments witnessing a remarkable growth trajectory. According to a recent report by the Reserve Bank of India (RBI), the retail digital payments have skyrocketed from 162 crore transactions in the financial year 2012-13 to an impressive over 16,416 crore transactions in the financial year 2023-24, marking a nearly 100-fold increase over 12 years.
The report highlights that between 2013 and 2024, digital transactions surged 94 times in volume and 3.5 times in value, driven by the impressive advancements in the Unified Payments Interface (UPI) and the wide array of digital payment options available in the country.
In the calendar year 2013, there were 222 crore digital transactions valued at ₹772 lakh crore. Fast forward to CY-2024, and the numbers have soared to over 20,787 crore transactions valued at ₹2758 lakh crore, as per the RBI's latest half-yearly payment systems report.
A variety of digital payment modes have contributed to this surge, including the National Automated Clearing House (NACH), Immediate Payment Service (IMPS), UPI, Aadhaar Enabled Payment System (AePS), and others. Among these, UPI has emerged as a standout player, with its contribution to digital payments volume surging from 34 per cent in CY-2019 to an impressive 83 per cent in CY-2024, showcasing a significant compound annual growth rate (CAGR) of 74 per cent over five years.
While UPI has been spearheading the digital payments revolution in India, other traditional payment systems like RTGS, NEFT, IMPS, credit cards, and debit cards have seen a decline in their share of digital payments volume during the same period.
The report also sheds light on the strides made in cross-border remittances, noting that while domestic payment systems have become more efficient, cross-border payments still face challenges in terms of cost and speed. The RBI is actively working on linking fast payment systems with those of other countries to facilitate smoother and more cost-effective cross-border transactions.
India's prominence in global foreign remittances remains strong, with the country being the top recipient of global foreign remittances, receiving a record $129 billion inflow in CY-2024. Efforts to reduce remittance costs have shown positive results, with corridors like Malaysia to India boasting impressively low rates, well below the Sustainable Development Goals (SDG) benchmark.
The journey of India's digital payment landscape is a testament to the country's rapid technological advancements and the growing adoption of digital financial services, positioning India as a key player in the global digital payments ecosystem.
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