UPI accounts for 85% of payment volumes: RBI's payment system report

RTGS, mainly used for high-value transfers, had largest share of transaction value in H1CY25

Unified Payments Interface (UPI) continued to drive India’s digital payments ecosystem in the first half (H1) of 2025, accounting for 85 per cent of total payment volumes, according to data from the Payment System Report released on Thursday by the Reserve Bank of India (RBI).

 

However, in terms of value, UPI contributed just 9 per cent, reflecting its dominance in small-ticket transactions.

 

UPI has emerged as the most widely used retail fast payment system (FPS) in India due to its efficiency, 24x7 availability, and ease of use.

 

The volume of UPI transactions surged from 10.79 billion in calendar year (CY) 2019 to 172.21 billion in CY2024. The total value of these transactions rose from ₹18.4 trillion in CY2019 to ₹246.8 trillion in CY2024. In the H1CY2025, UPI transactions totalled 106.37 billion, amounting to ₹143.3 trillion. The lower average ticket size indicates that UPI is primarily used for small-value transactions.

 

Meanwhile, the real-time gross settlement (RTGS) system, mainly used for high-value transfers, accounted for the largest share of transaction value at 69 per cent but represented only 0.1 per cent of overall volumes. With a minimum transaction threshold of ₹2 lakh, RTGS remains the preferred mode for wholesale payments, while UPI’s simplicity continues to drive a massive number of retail transactions nationwide.

 

RTGS transactions recorded a compounded annual growth rate of 13.7 per cent in volume and 13.78 per cent in value between 2020-21 and 2024-25, according to RBI data. By CY2024, transactions conducted outside business hours (18:00–08:00) accounted for 19 per cent of the total volume and 16 per cent of the total value, reflecting the growing adoption of the 24/7/365 RTGS system.

 

“RTGS transactions are predominantly customer transactions, accounting for over 99 per cent of volume and 89 per cent of value. Customer transactions include all transactions initiated by the remitting bank’s clients, comprising both retail and corporate transactions,” the RBI report said.

 

The report also observed that while the total volume and value of RTGS transactions have increased over the years, the average ticket size has fluctuated. A decline in average ticket size between CY2011 and CY2015 was followed by growth from CY2015 to CY2018. After CY2019, the average ticket size sharply declined, a trend that continued through CY2022. Since then, however, it has been on an upward trajectory.

 

Roughly 75 per cent of customer RTGS transactions fall within the ₹2 lakh to ₹10 lakh range, indicating relatively lower ticket sizes. In contrast, interbank transactions are generally larger, with over half valued between ₹10 lakh and ₹2.5 crore.