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India’s Unified Payments Interface (UPI) has seen explosive growth, with transactions rising from just 92 crore in FY 2017-18 to 18,587 crore in FY 2024-25—an astonishing compound annual growth rate (CAGR) of 114%, Parliament was informed on Monday.
During the same period, transaction value jumped from ₹1.10 lakh crore to ₹261 lakh crore. In July 2025 alone, UPI crossed another milestone, recording over 1,946.79 crore transactions in a single month for the first time, Minister of State for Finance Pankaj Chaudhary said in a written reply to the Lok Sabha.
Overall digital payments in India also surged—from 2,071 crore transactions in FY 2017-18 to 22,831 crore in FY 2024-25, growing at a CAGR of 41%. Their total value rose from ₹1,962 lakh crore to ₹3,509 lakh crore in the same period.
The minister highlighted steps taken by the government and RBI to strengthen banking governance, credit discipline, and technology adoption, particularly in Public Sector Banks (PSBs). These include:
- Governance Reforms: Arm’s-length selection of top management via the Financial Services Institutions Bureau, appointment of non-executive chairmen, and performance-based extensions for MDs.
- EASE Reforms: Benchmark-based progress in governance, prudential lending, risk management, data-driven banking, and HR outcomes.
On MSME support, initiatives like the Mutual Credit Guarantee Scheme (MCGS-MSME) and the Emergency Credit Line Guarantee Scheme (ECLGS) have boosted credit flow. Following the Union Budget 2024-25 announcement, a New Credit Assessment Model has been launched for MSMEs, using digitally verified data for automated loan appraisals.
The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) now offers up to 85% guarantee cover for loans of ₹10 crore or below, supporting both new and existing borrowers.
