Retail Digital Payments in India Soar 100-Fold Over 12 Years
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Synopsis
India's retail digital payments have skyrocketed from 162 crore transactions in 2012-13 to over 16,416 crore in 2023-24, marking a remarkable 100-fold increase in just 12 years, according to a new RBI report.
Key Takeaways
- Retail digital payments grew 100-fold in 12 years.
- Digital Payment Index rose over four-fold in six years.
- Volume of transactions surged to 20,787 crore by CY-2024.
- Integration of UPI and PayNow enhances cross-border payments.
- Strong growth in digital payment infrastructure noted.
New Delhi, Jan 28 (NationPress) Retail digital payments in India have surged from 162 crore transactions in the fiscal year 2012-13 to surpass 16,416 crore transactions in the fiscal year 2023-24 — representing an astounding 100-fold increase over a span of 12 years, according to a recent report by the RBI.
The impressive expansion of payment infrastructure and performance is also reflected in the Digital Payment Index released by the RBI, which has recorded a more than four-fold increase in the past six years (reaching 445.50 for March 2024, base 100 as of March 2018), as noted in the Central Bank’s Payment Systems Report.
Overall, the digital payment landscape in India has experienced exponential growth over the past decade.
The report highlighted that in CY-2013, there were 222 crore digital transactions valued at Rs 772 lakh crore, which has now escalated 94 times in volume and over 3.5 times in value to more than 20,787 crore transactions valued at Rs 2,758 lakh crore in CY-2024.
In just the last five years, digital payments in India have surged 6.7 times in volume and 1.6 times in value. This reflects a five-year CAGR of 45.9% in terms of digital payments volume and 10.2% in value.
Transitioning from a fledgling digital payment ecosystem, primarily dominated by traditional card-based methods, it has evolved into a comprehensive framework offering a variety of digital payment solutions designed to meet the diverse needs of Indian consumers — including instant payment systems (UPI, IMPS), small value payment systems (PPI, UPI Lite), large value payment options (RTGS), bill payments (BBPS), bulk payments (NACH), offline payments (UPI Lite X), government payments (NACH, APBS), toll payments (NETC), and many more.
The Reserve Bank is also concentrating on integrating fast payment systems (FPS) with those of other nations to provide a seamless and cost-effective cross-border payment experience.
Last year, India's Unified Payments Interface (UPI) was interconnected with PayNow of Singapore through a collaborative effort between the RBI and the Monetary Authority of Singapore. Recent data indicates a significant reduction in the costs associated with remittances, the report noted.
