UPI Dominates Payments with 85.5% Share in H2 2025: RBI Report

New Delhi: The Unified Payments Interface (UPI) commanded the largest share of transaction volume at 85.5 percent in the second half (H2) of 2025, followed by NEFT at 3.6 percent and Prepaid Payment Instruments (PPIs) at 3.6 percent, according to a latest report by the Reserve Bank of India (RBI).

RTGS accounted for a mere 0.1 per cent, reflecting its role as a high-value, low-volume system.

"Conversely, in terms of transaction value, RTGS dominated with 68.6 percent of the total transaction value, followed by NEFT at 14.9 percent and UPI at 9.5 percent, with PPIs contributing only 0.1 percent - a clear illustration of how RTGS handles large-value settlements while UPI drives mass retail transactions," said the half-yearly Payment Systems Report by the RBI. NEFT, positioned as a hybrid system capable of processing both small and large transactions with settlement within an hour, holds the second-highest share in both volume and value, underscoring its versatility and continued relevance in India's evolving payments ecosystem.

India's digital payments ecosystem has witnessed impressive expansion, with transaction volumes surging 33 times and values rising by almost 3 times over the 10- year period 2016 to 2025.

Over the most recent five-year period, volumes have grown more than 4 times and values have nearly doubled, translating into a compound annual growth rate (CAGR) of 43 percent in volume and 17 percent in value. (IANS)

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