RBI Report Highlights Explosive Digital Payment Growth and Strategic Moves for Cross-Border UPI
SDG 9: Industry, Innovation, and Infrastructure | SDG 8: Decent Work and Economic Growth | SDG 10: Reduced Inequalities
Institutions: Reserve Bank of India (RBI) | Ministry of Finance
The Reserve Bank of India (RBI) published its half-yearly Payment Systems Report for June 2025, confirming significant and sustained growth in India’s digital ecosystem. Over the decade ending 2024, digital transactions grew 38 times in volume terms and three times in value, demonstrating a major shift away from paper-based instruments. This robust system is overseen by a newly restructured regulatory authority: with effect from May 9, 2025, the Payments Regulatory Board (PRB) replaced the former BPSS, becoming the designated authority for regulation and supervision of the payment systems under the amended PSS Act, 2007.
The Unified Payments Interface (UPI) remains the engine of the ecosystem, accounting for a massive 85% of all payment transaction volume in H1 2025. Conversely, the Real Time Gross Settlement (RTGS) system, which handles high-value, wholesale settlements, accounted for 69% of the total transaction value. UPI’s successful internationalization efforts include the operational linkage with Singapore’s PayNow and acceptance via QR code in seven countries, including France and the UAE.
Key regulatory steps taken by the RBI during the period included:
Permitting the National Payments Corporation of India (NPCI) to prescribe and revise transaction limits for all Person-to-Merchant (P2M) UPI payments, enhancing flexibility for new use cases.
Permitting Small Finance Banks (SFBs) to offer credit on UPI, a move intended to expand low-cost credit access.
Continuing to actively pursue the interlinking of UPI with Fast Payment Systems globally as part of the G20 roadmap to address frictions in cross-border payments
This report confirms India’s progress in creating an efficient, resilient, and accessible payment infrastructure, a strategic goal for its digital transformation. The dual strategy of maintaining large-value system integrity (RTGS) while aggressively expanding micro-payments (UPI) strengthens financial inclusion and supports the wider economy. The RBI’s active pursuit of cross-border UPI linkages and the adoption of the global ISO 20022 messaging standard are critical steps that align India’s financial technology leadership with global efforts to streamline international payments.
What is the Payments Regulatory Board (PRB)?→ The Payments Regulatory Board (PRB) is the designated authority for the regulation and supervision of India’s payment systems, effective May 09, 2025. Chaired by the RBI Governor, the PRB provides the regulatory foundation to ensure the safety, security, and efficiency of the payment ecosystem.
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RBI Press Release on Payment Systems Report