NEW DELHI— India has recorded more than 65,000 crore digital transactions amounting to over ₹12,000 lakh crore in the past six financial years (FY20 to FY25), the government informed Parliament on Monday.
In a written reply to the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said the government has worked in coordination with the Reserve Bank of India (RBI), National Payments Corporation of India (NPCI), fintech companies, banks, and state governments to accelerate digital payment adoption across the country, including in tier-2 and tier-3 cities.
To promote digital payment infrastructure in smaller towns and underserved regions, the RBI launched the Payments Infrastructure Development Fund (PIDF) in 2021. As of May 31, 2025, approximately 4.77 crore digital touchpoints have been established through this initiative.
The RBI has also introduced the Digital Payments Index (RBI-DPI) to monitor the extent of payment digitization nationwide. According to the latest figures, the RBI-DPI stood at 465.33 in September 2024, signaling consistent growth in digital transaction adoption, supporting infrastructure, and performance across the country.
“Platforms like UPI have empowered small vendors, rural users, and everyday citizens to embrace digital payments, thereby reducing dependency on cash and increasing participation in the formal economy,” Chaudhary noted.
The minister emphasized that increased digital access has helped bring more people into formal financial systems, enabling broader economic participation and enhancing access to credit.
To support micro, small, and medium enterprises (MSMEs), as well as small merchants, the government and financial regulators have introduced several targeted measures. These include the rationalization of the Merchant Discount Rate (MDR) on debit card transactions, guidelines for the Trade Receivables Discounting System (TReDS) that facilitate invoice discounting for MSMEs, and incentive programs to promote low-value BHIM-UPI transactions among small merchants.
The growing digital ecosystem has revolutionized access to financial services, especially for underserved and unbanked communities. By enabling seamless, traceable transactions, platforms like UPI are helping individuals and businesses establish strong financial footprints, the minister added. (Source: IANS)
