Digital payment infrastructure facilitates over 160 billion transactions in a year for a value of over Rs 2400 trillion

Rajeshwar Rao, Deputy Governor, Reserve Bank of India has stated the last decade has seen growth of differentiated banking in India with several unique categories of institutions such as Small Finance Banks and Payment Banks emerging on the horizon. Growth of banking system, along with very vibrant non-banking financial space and cooperative banking has bolstered the financial intermediation in the economy. Just to offer some perspective about their scale, the assets of scheduled commercial banks and NBFCs have reached at about Rs 280 trillion and Rs 50 trillion respectively as on March 31, 2024, and the outstanding credit facilitated by these institutions is roughly Rs 205 trillion.

Deputy Governor noted this extensive network of financial institutions has also helped in improvement of the quality of financial inclusion in our country, which is reflected by constant rise in the financial inclusion index measuring access, usage, and quality of financial instruments. Another revolution that has happened is in the digital space. The digital payment infrastructure facilitates over 160 billion transactions in a year for a value of over Rs 2400 trillion (FY 2023-24). Retail digital transactions account for over Rs 720 trillion of value, out of which transactions amounting to approximately Rs 265 trillion are being facilitated through indigenous UPI and IMPS alone.

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