India’s Digital Payment Booms: Rs 1,669 Lakh Crore Surpass in FY 2024-25

India’s digital payments surged to Rs 1,669 lakh crore in the first five months of FY 2024-25, according to the Union Finance Ministry. The transaction volume totaled 8,659 crore, propelled by UPI’s exponential growth. The global expansion of UPI and RuPay promises to enhance India’s financial stature.

The value of digital payments in India has soared to Rs 1,669 lakh crore in the first five months of the current financial year (FY 2024-25), Union Finance Ministry reported. Transaction volumes during this period reached 8,659 crore.

The growth is largely driven by the Unified Payments Interface (UPI), which witnessed a meteoric rise from Rs 1 lakh crore to Rs 200 lakh crore, at an astounding CAGR of 138 per cent. Ministry statements highlighted that between April and August 2024-25, transaction value skyrocketed to Rs 101 lakh crore.

Finance Ministry data underscored India's digital payment revolution, with the total number of transactions climbing from 2,071 crore in FY 2017-18 to 18,737 crore in FY 2023-24, recording a CAGR of 44 per cent. In the first five months of FY 2024-25, transaction values jumped from Rs 1,962 lakh crore to Rs 3,659 lakh crore at a 11 per cent CAGR. The latest period saw figures surge to an impressive Rs 1,669 lakh crore.

The ministry emphasized that UPI has anchored India's digital payment infrastructure, facilitating real-time, secure, and seamless transactions. From 92 crore in FY 2017-18, UPI transactions catapulted to 13,116 crore in FY 2023-24 at a CAGR of 129 per cent. This innovation significantly improves the financial transaction landscape.

India's digital payment systems are also making inroads globally. UPI and RuPay are expanding in seven countries, including the UAE, Singapore, and France, enabling Indians to engage in cross-border transactions. It is anticipated that this outreach will bolster remittance flows, enhance financial inclusion, and elevate India's global financial presence.

(With inputs from agencies.)