India's UPI handles 85% of payment volume as RTGS leads high‑value transfers, RBI reports

The Reserve Bank of India's half‑yearly Payment Systems Report for the second half of 2025 shows that the Unified Payments Interface (UPI) accounted for 85.5 % of all transaction volume, while the Real‑Time Gross Settlement (RTGS) system captured 68.6 % of total payment value.

Digital payments in India have expanded dramatically, with transaction volumes rising 33‑fold and values nearly tripling since 2016. Over the past five years, volumes grew more than four times and values almost doubled, delivering compound annual growth rates of 43 % in volume and 17 % in value. The surge is attributed to widespread smartphone penetration, the efficiency of UPI, and growing consumer confidence in cashless transactions.

The report also notes a rise in UPI QR code usage and prepaid payment instrument wallets, while traditional POS terminals and bank‑owned ATMs saw declines. Average UPI ticket size fell from ₹1,848 in 2021 to ₹1,313 in 2025, reflecting its dominance in small‑value payments.