Digital Transactions Account for 99.7% of All Payments in 2024

UPI continues to dominate India’s cashless economy; RBI projects further rise in 2025

According to the Reserve Bank of India’s (RBI) annual report on payment systems, digital transactions made up an unprecedented 99.7% of all payments in 2024, marking a record high in India’s journey toward a cashless economy. The RBI expects this trend to continue through 2025, with digital payment penetration touching nearly 100% of total transaction volumes.

 

In comparison, the share of digital transactions stood at 97.5% in 2023, reflecting the rapid expansion of cashless payment systems such as UPI (Unified Payments Interface), NEFT, IMPS, RTGS, and card-based platforms.

 

UPI Leads the Way

Among all digital payment channels, UPI remained the undisputed leader, accounting for 85% of all payment transactions by volume during 2024. Even in terms of value, UPI’s contribution rose steadily, supported by increasing merchant acceptance and widespread consumer adoption across urban and rural markets.

 

During the first half of 2025 (calendar year), UPI and other real-time systems together recorded a 16.1 billion transactions, up from 14.8 billion in 2019 — a growth rate unmatched by any other payment infrastructure globally.

 

Real-Time Payment Growth

The RTGS system (Real-Time Gross Settlement), used primarily for high-value transfers, also saw significant growth. Between 2019 and 2024, RTGS transaction volumes rose from 262 crore to 926 crore, while transaction values increased from ₹232 lakh crore to ₹432 lakh crore, indicating a massive shift even among corporate and institutional users toward digital modes.

 

Similarly, IMPS (Immediate Payment Service) and NEFT (National Electronic Funds Transfer) also reported robust double-digit growth rates, contributing to India’s position as the world’s largest digital payments ecosystem.

 

Decline in Cheque Transactions

While the use of physical cheques continued to decline, their share in overall payment value still stood at 2.3%, underscoring their relevance for certain high-value or institutional transactions. However, experts predict that this residual share will drop below 1% by 2026 as government departments and businesses adopt paperless systems.

 

Driving Financial Inclusion

The RBI report highlighted that digital payment adoption has been instrumental in deepening financial inclusion across India. The introduction of UPI Lite, Aadhaar-based payments, and the expansion of QR code infrastructure have brought millions of new users into the formal financial system, especially in tier-2 and tier-3 cities.

 

Toward a Cashless Future

With more than 2,830 lakh crore rupees worth of digital transactions processed in 2024, India’s digital economy continues to outperform global peers. The RBI projects that by 2025, nearly every transaction — whether retail, utility, or government — will be conducted digitally.

 

The transformation reflects not only technological innovation but also a behavioral shift toward convenience, transparency, and accountability — signaling the dawn of a truly “Digital Bharat” era.