UPI holds 85.5% of India's payment volumes in H2 2025: RBI report
Synopsis
UPI now handles 85.5% of all digital payment transactions in India — but just 9.5% of the value. The RBI's H2 2025 data reveals a two-speed payments system: UPI owns the mass market while RTGS quietly moves 68.6% of the money. With volumes up 33x in a decade, the infrastructure story is settled; the next frontier is moving bigger money through UPI.
Key Takeaways
UPI held 85.5 per cent of India's digital payment transaction volume in H2 2025 , per the RBI half-yearly Payment Systems Report.
RTGS dominated by value at 68.6 per cent , while UPI contributed only 9.5 per cent of total transaction value.
NEFT and PPIs each held 3.6 per cent of volume; RTGS accounted for just 0.1 per cent .
Digital payment volumes grew 33 times between 2016 and 2025 , with a five-year CAGR of 43 per cent in volume and 17 per cent in value.
Total payment transactions reached 26,819 crore in 2025 , up from 6,437 crore in 2021 ; value rose from ₹1,741 lakh crore to ₹3,215 lakh crore .
The Unified Payments Interface (UPI) accounted for 85.5 per cent of all digital payment transactions by volume in the second half of 2025 (H2 2025), according to the half-yearly Payment Systems Report released by the Reserve Bank of India (RBI). The data cements UPI's position as the dominant rail for retail transactions in India's rapidly maturing digital payments ecosystem.
How the payment systems stack up by volume
Behind UPI, the National Electronic Funds Transfer (NEFT) system and Prepaid Payment Instruments (PPIs) each held a 3.6 per cent share of transaction volume in H2 2025. The Real Time Gross Settlement (RTGS) system, by design a high-value, low-frequency channel, contributed just 0.1 per cent of total volume.
NEFT's dual positioning — capable of processing both small and large transactions with settlement within an hour — gives it a continued foothold across retail and semi-wholesale use cases, the RBI report noted.
RTGS dominates by value, UPI trails at 9.5%
The volume-value divergence is stark. In terms of transaction value, RTGS commanded 68.6 per cent of the total, reflecting its role in large-value interbank and corporate settlements. NEFT followed at 14.9 per cent, while UPI — despite its overwhelming volume lead — contributed only 9.5 per cent of total value. PPIs accounted for a marginal 0.1 per cent by value.
'Conversely, in terms of transaction value, RTGS dominated with 68.6 per cent of the total transaction value, followed by NEFT at 14.9 per cent and UPI at 9.5 per cent, with PPIs contributing only 0.1 per cent — a clear illustration of how RTGS handles large-value settlements while UPI drives mass retail transactions,' the RBI report stated.
A decade of explosive growth: 33x in volume
The RBI report frames the current figures against a decade of structural transformation. Between 2016 and 2025, digital payment volumes surged 33 times while values rose nearly 3 times. Over the more recent five-year window, volumes grew more than 4 times and values nearly doubled — translating into a compound annual growth rate (CAGR) of 43 per cent in volume and 17 per cent in value.
In absolute terms, payment transactions climbed from 6,437 crore in 2021 to 26,819 crore in 2025. Transaction value rose from ₹1,741 lakh crore to ₹3,215 lakh crore over the same period, recording CAGRs of 42.9 per cent and 16.6 per cent, respectively.
What is driving the expansion
The RBI attributed the surge to widespread smartphone penetration, the public digital infrastructure built around UPI, and growing consumer confidence in cashless transactions. 'This reflects the nation's rapidly expanding digital landscape, driven by ubiquitous smartphone penetration, transformative public infrastructure such as the Unified Payments Interface (UPI), and growing public trust in secure, seamless cashless transactions,' the report explained.
Notably, the volume-value gap — UPI at 85.5 per cent of transactions but only 9.5 per cent of value — signals that while UPI has achieved near-universal adoption for everyday retail payments, high-value financial flows continue to route through RTGS and NEFT. As UPI's per-transaction limit expands and merchant adoption deepens, that gap could narrow in the years ahead.
Point of View
The next RBI report could show a very different value split — and a deeper test of UPI's settlement resilience at scale.
NationPress
13 Aug 2026
Frequently Asked Questions
What share of India's digital payments does UPI hold in H2 2025?
UPI accounted for 85.5 per cent of all digital payment transactions by volume in the second half of 2025, according to the RBI's half-yearly Payment Systems Report. By value, however, UPI contributed only 9.5 per cent, as large-value flows continue to route through RTGS.
Which payment system dominates by transaction value in India?
RTGS dominated by transaction value, holding a 68.6 per cent share in H2 2025. NEFT followed at 14.9 per cent, reflecting its role in both retail and semi-wholesale settlements. UPI, despite its volume dominance, ranked third by value at 9.5 per cent.
How fast have India's digital payments grown over the past decade?
Between 2016 and 2025, digital payment volumes in India grew 33 times and values rose nearly 3 times, per RBI data. Over the five-year period from 2021 to 2025, volumes grew more than 4 times at a CAGR of 42.9 per cent, while values nearly doubled at a CAGR of 16.6 per cent.
What drove India's digital payments boom, according to the RBI?
The RBI attributed the growth to widespread smartphone penetration, the public infrastructure built around UPI, and rising consumer trust in cashless transactions. The report described these as structural drivers of the country's expanding digital payments landscape.
What is the role of NEFT in India's payments ecosystem?
NEFT held 3.6 per cent of transaction volume and 14.9 per cent of transaction value in H2 2025. Its ability to process both small and large transactions with settlement within an hour positions it as a versatile hybrid system, bridging retail and wholesale payment needs.
