India Logs Rs 12,000 Lakh Crore in Digital Transactions Over 6 Years
- Rs 12,000 lakh crore worth of digital transactions recorded across 65,000 crore transactions between FY20 and FY25.
- 4.77 crore digital touchpoints deployed under RBI’s PIDF to boost digital payment infrastructure in rural and remote areas.
- UPI and government initiatives like MDR rationalisation and BHIM-UPI incentives are driving financial inclusion and MSME adoption.
In a significant milestone for India's digital economy, more than Rs 12,000 lakh crore worth of digital transactions have taken place in the last six financial years (FY20 to FY25), covering over 65,000 crore transactions, the Parliament was informed.
Minister of State for Finance, Pankaj Chaudhary, in a written reply to the Lok Sabha, highlighted the government’s continuous efforts to boost digital payment adoption across the country, including in tier-2 and tier-3 cities. This has been achieved through collaborations with key stakeholders like the Reserve Bank of India (RBI), National Payments Corporation of India (NPCI), fintech companies, banks, and state governments.
One of the major initiatives supporting this digital push is the Payments Infrastructure Development Fund (PIDF), set up by the RBI in 2021. The fund aims to enhance the deployment of digital payment acceptance infrastructure in tier-3 to tier-6 cities, northeastern states, and Jammu & Kashmir. As of May 31, 2025, around 4.77 crore digital touchpoints have been installed under PIDF.
To track and measure the country’s digital payment progress, the RBI has introduced the Digital Payments Index (RBI-DPI), which reflects adoption, infrastructure development, and performance. The latest RBI-DPI score for September 2024 stood at 465.33, indicating strong growth and deepening penetration of digital transactions.
Chaudhary pointed out that platforms like UPI have played a pivotal role in enabling citizens, especially small vendors and rural users, to transact digitally. This shift has reduced cash dependency and significantly increased participation in the formal financial ecosystem.
To further support MSMEs and small businesses in embracing digital payments, several initiatives have been rolled out. These include the rationalisation of the Merchant Discount Rate (MDR) for debit card transactions, the Trade Receivables Discounting System (TReDS) to offer better invoice discounting for MSMEs, and incentive programmes to promote low-value BHIM-UPI transactions.
The minister emphasized that the growing use of digital payments has revolutionised access to formal credit and financial services, empowering individuals and businesses particularly in underserved and remote areas and driving India toward a more inclusive digital economy.
