India's Digital Payments Surge: UPI Drives Massive Growth

Digital payments in India have soared, reaching Rs 1,669 lakh crore in the first five months of FY 2024-25, driven by the growth of UPI transactions. The Finance Ministry highlights the significant expansion of digital payments and its impact on cross-border transactions and financial inclusion.

The value of digital payments in India has surged to Rs 1,669 lakh crore in the first five months (April-August) of the current financial year 2024-25, according to the Union Finance Ministry. The ministry stated that the transaction volume of digital payments reached 8,659 crore during this period. Notably, the value of UPI transactions has expanded exponentially from Rs 1 lakh crore to Rs 200 lakh crore, marking a CAGR of 138 per cent. In the last five months alone, the total transaction value has soared to Rs 101 lakh crore.

In a statement released on Friday, the Ministry of Finance highlighted the significant growth in India's digital payments, with transaction volumes leaping from 2,071 crore in FY 2017-18 to 18,737 crore in FY 2023-24, recording a CAGR of 44 per cent. During April-August of the current financial year, the transaction volume reached 8,659 crore, and the value of transactions climbed from Rs 1,962 lakh crore to Rs 3,659 lakh crore, reflecting a CAGR of 11 per cent. The total transaction value for the last five months stood at Rs 1,669 lakh crore.

The ministry emphasized that UPI remains the cornerstone of India's digital payment ecosystem. UPI transactions surged from 92 crore in FY 2017-18 to 13,116 crore in FY 2023-24, achieving a CAGR of 129 per cent. The Finance Ministry also stated that the ongoing efforts to accelerate the adoption of fast payment systems like UPI have revolutionized financial transactions, ensuring real-time, secure, and seamless payments for millions.

Furthermore, the Ministry noted the international expansion of India's digital payment platforms, with UPI and RuPay rapidly gaining traction globally. These platforms are facilitating hassle-free cross-border transactions for Indians living and traveling abroad. Presently, UPI operates in seven countries, including the UAE, Singapore, Bhutan, Nepal, Sri Lanka, France, and Mauritius, enabling Indian consumers and businesses to engage in international payments.

According to the ministry, this global expansion is expected to enhance remittance flows, foster financial inclusion, and elevate India's standing in the global financial arena.

(With inputs from agencies.)