How Did UPI Transactions Surge 114% Over 8 Fiscal Years?
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Synopsis
Discover how UPI transactions have dramatically increased by 114% over the past eight fiscal years. This surge in digital payments showcases the transformative impact of technology on India's financial landscape.
Key Takeaways
- UPI transaction growth reached 114% CAGR.
- Monthly UPI transactions exceeded 1,946.79 crore in July 2025.
- Digital payment volume surged to 22,831 crore in FY 2024-25.
- Government initiatives support MSMEs through credit schemes.
- Governance reforms in PSBs enhance financial stability.
New Delhi, Aug 11 (NationPress) The number of UPI transactions skyrocketed from 92 crore in FY 2017-18 to 18,587 crore in FY 2024-25, reflecting a remarkable CAGR of 114%, as reported to Parliament on Monday.
In the same timeframe, the total transaction value surged from Rs 1.10 lakh crore to Rs 261 lakh crore. In July 2025, UPI achieved a historic high, registering over 1,946.79 crore transactions in a single month, according to Minister of State for Finance, Pankaj Chaudhary, in a written response to a question in Lok Sabha.
The overall volume of digital payment transactions in India escalated from 2,071 crore in FY 2017-18 to 22,831 crore in FY 2024-25, marking a CAGR of 41%.
During this period, the monetary value of these transactions increased from Rs 1,962 lakh crore to Rs 3,509 lakh crore, the minister stated.
The minister also highlighted that the government and the Reserve Bank of India have implemented various initiatives over recent years to tackle issues surrounding credit discipline, responsible lending, enhanced governance, technology adoption, and effective regulation of co-operative banks.
He elaborated that governance reforms in Public Sector Banks (PSBs) have included measures like arms-length selection of top management through the Financial Services Institutions Bureau, the introduction of non-executive chairmen in nationalised banks, expanding the talent pool, and implementing performance-based extensions for Managing Directors.
The Enhanced Access and Service Excellence (EASE) reforms have facilitated objective and benchmarked advancements across essential areas in PSBs, including governance, prudent lending, risk management, technology-driven banking, and outcome-oriented HR.
Among the initiatives introduced to enhance credit flow to Micro, Small and Medium Enterprises (MSMEs) are the Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME) and the Emergency Credit Line Guarantee Scheme (ECLGS).
Following the announcement of the Union Budget 2024-25, the government unveiled a New Credit Assessment Model for MSMEs. This model harnesses digitally sourced and verifiable data to create automated journeys for MSME loan assessments, employing objective decision-making for all loan applications and model-based limit evaluations for both Existing to Bank (ETB) and New to Bank (NTB) MSME borrowers.
The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), overseen by the Ministry of MSME, provides guarantee coverage of up to 85% for loans amounting to Rs. 10 crore or less, offered by eligible Member Lending Institutions (MLIs) to Micro and Small Enterprises (MSEs).
Point of View
We recognize the significance of the remarkable growth in UPI transactions. This development not only underscores the increasing trust in digital payment systems but also the proactive measures taken by the government to enhance financial inclusion and stability. It is crucial for the nation to foster these innovations while ensuring robust governance and accountability.
NationPress
20/08/2025
Frequently Asked Questions
What is the growth rate of UPI transactions?
UPI transactions have grown at a remarkable CAGR of 114% from FY 2017-18 to FY 2024-25.
How many UPI transactions were recorded in July 2025?
In July 2025, UPI reached a historical milestone with over 1,946.79 crore transactions in a single month.
What initiatives has the government taken to support MSMEs?
The government has implemented various schemes, including the Mutual Credit Guarantee Scheme and the Emergency Credit Line Guarantee Scheme to enhance credit flow to MSMEs.
What is the value of digital payment transactions in India?
The value of digital payment transactions in India has increased from Rs 1,962 lakh crore to Rs 3,509 lakh crore between FY 2017-18 and FY 2024-25.
What reforms have been introduced in Public Sector Banks?
Reforms in PSBs include governance improvements, arms-length selection of management, and performance-based extensions for Managing Directors.
