MUMBAI, India — India’s digital payments ecosystem continued its rapid expansion in 2025, with the Reserve Bank of India’s Digital Payments Index rising to 516.76 as of September, up from 493.22 in March, according to data released by the central bank on Thursday.
The increase reflects strong growth in digital transaction activity across the country, driven largely by improvements in payment performance and wider availability of payment enablers, the Reserve Bank said.
The Digital Payments Index is a composite measure designed to track the extent and depth of digital payment adoption in India. Introduced in January 2021 with March 2018 set as the base period, the index assigned that base year a value of 100. It rose to 153.47 by March 2019 and has continued to climb steadily in the years since. The index is published every six months, with the previous reading released in July 2025.
The index assesses digital payments using five broad parameters. Payment performance carries the highest weight at 45 percent, followed by payment enablers at 25 percent. Demand-side and supply-side payment infrastructure each account for 10 percent, while consumer centricity contributes the remaining 5 percent. Each parameter is supported by multiple sub-parameters and measurable indicators that together capture the penetration and effectiveness of digital payments nationwide.
A major driver of the sustained growth has been the widespread adoption of the Unified Payments Interface, which has transformed everyday transactions across India. International assessments have recognized UPI as the world’s largest retail fast-payment system by transaction volume.
Global industry reports have also highlighted India’s leadership in real-time payments, with UPI accounting for nearly half of worldwide real-time transaction volumes. Other major markets, including Brazil, Thailand, and China, trail India by a wide margin in both market share and transaction counts.
The latest index reading underscores how deeply digital payments are becoming embedded in India’s financial system, supported by expanding infrastructure, improved performance, and growing acceptance among consumers and businesses across the country. (Source: IANS)
