Rs 12,000 Lakh Crore In Digital Payments Seen In Last Six Fiscals
The use of digital payments has changed the access to financial services, especially for underserved and unserved populations.
Digital transactions in the last six financial years have increased, with 65,000 crore digital transactions recorded, valuing to more than Rs 12,000 lakh crore.
The government is working with multiple stakeholders like the Reserve Bank of India, National Payments Corp., fintechs, banks and state governments to improve the use of digital payments in the country, including in tier-2 and tier-3 cities, according to a press release by the Ministry of Finance.
In 2021, the RBI has also established a Payments Infrastructure Development Fund to promote deployment of digital payments acceptance infrastructure in tier-3 to 6 cities, north-eastern states, and Jammu and Kashmir. As many as 4.77 crore digital touchpoints have been deployed through PIDF as of March 31, 2025, the release stated.
The government, RBI and NPCI have carried out various initiatives with an intention to support small businesses and MSMEs in adopting digital payment systems to widen their customer base and improve efficiency.
These include measures like BHIM-UPI transactions among small merchants, the rationalisation of merchant discount rate or debit card transactions, the press release said.
The use of digital payments has changed the access to financial services, especially for underserved and unserved populations.
Through platforms like UPI, these payments provide seamless and traceable transactions, building a strong financial trail for individuals and businesses. This digital footprint is an alternative data source, assisting financial institutions upscaling credit worthiness even when conventional documentation is lacking, it said.
