UPI leads in payments volume, RTGS in value; debit card transactions decline: RBI report

1. UPI’s ascendancy in payment volume

The RBI’s data underscore that UPI has become the central pillar of India’s retail digital-payments landscape. In the fiscal year 2024-25, UPI reportedly processed about 11,761.4 crore (i.e., 117.6 billion) transactions, representing a volume growth of roughly 59.2 % year-on-year and a value of about ₹180.24 lakh crore (≈₹180 trillion), up ~44.8 %.
Moreover, UPI accounted for approximately 84 % of all retail digital‐payment volumes in that year.
In terms of share, UPI’s portion of overall digital retail payments rose from about 75.6 % in FY2022-23 to about 83.9 % in FY2023-24.
From a longer‐term perspective, UPI’s share of the volume of digital payments has grown from roughly 34 % in 2019 to around 83 % by 2024.
Clearly, UPI has become the default payment rail for the vast majority of retail transactions — especially low-ticket, person-to-merchant (P2M) and person-to-person (P2P) payments.

The reasons for this dominance are multifold: real-time settlement, round-the-clock availability, widespread merchant/QR acceptance, ease of use via mobile apps, and significant regulatory and infrastructural support. The growth has been impressive: a five‐year compounded annual growth rate (CAGR) of ~74 % in volume since 2019 for UPI has been noted.
What this means in practical terms is that everyday payments — whether for groceries, small services, utility bills, etc. — are increasingly being routed through UPI rather than cash or cards.

2. RTGS continues to lead in value

While UPI leads in sheer number of transactions, the RTGS system continues to dominate in value terms. According to the RBI (as reported), whilst UPI’s ticket size is relatively small (average value per transaction is modest), RTGS — which handles large value transfers among banks and major institutions — naturally records outsized value per transaction but (conversely) very low volume.
For example, in calendar year 2019 → 2024, RTGS volume rose from ~14.8 crore transactions to ~29.5 crore, while its value rose from ~₹1,388.7 lakh crore to ~₹1,938.2 lakh crore.
In H1 2025, RTGS processed 16.1 crore transactions amounting to ~₹1,079.2 lakh crore.
The contrast is striking: UPI handles billions of transactions (mostly smaller in value) while RTGS handles tens of millions but huge values per transfer. Thus, UPI drives the volume of payments, while RTGS drives the value of payments in the Indian system.

This dual structure is typical in payment ecosystems: one rail catering to mass low-value transactions (UPI) and another catering to large value, wholesale or large‐ticket transfers (RTGS). The health of both is therefore critical for overall payment system resilience and financial stability.

3. Decline in debit-card transactions

A noteworthy counter-trend in the RBI data is the decline in the use of debit cards — both in volume and value — contrasting with the rise of credit cards and UPI. According to the RBI’s half-yearly Payment Systems Report (December 2024), debit-card transaction volumes dropped from 495.32 crore in 2019 to 173.90 crore in 2024. The value declined from ~₹6.83 lakh crore to ~₹5.16 lakh crore over the same period.
In comparison, credit-card use more than doubled in volume from ~208.67 crore in 2019 to ~447.23 crore in 2024, and value rose from ~₹7.13 lakh crore to ~₹20.37 lakh crore.
The RBI commentary explains that debit cards are mostly used for cash withdrawal and “basic transactions,” while credit cards have gained ground — particularly in online spending. Both cards, however, face growing competition from digital alternatives like UPI.

One way to interpret this: as UPI becomes widespread for everyday retail payments, the need to “swipe” a debit card declines. Many merchants accept UPI via QR, and many peer payments happen via the interface, reducing the reliance on debit cards for purchases. Meanwhile, credit cards retain a niche in online purchases, higher ticket spends, or where deferred payment is preferred.
From a policy and industry perspective, this shift signals a structural change in payment behaviour — merchants and users alike are opting for simpler, app-based payments rather than card infrastructures.

4. Implications & context

Putting these trends together, a few key implications emerge:

1. Financial inclusion & digital penetration: The surge of UPI means that digital payments are reaching increasingly deep into India’s economy — including smaller merchants, tier-2/3 towns, and lower-value transactions. The RBI reported that digital payments accounted for ~99.7 % of transaction volume and ~97.5 % of value by 2024.
   This suggests that cash and paper-based instruments are shrinking in relevance for everyday payments.
2. Business model shifts for banks / fintechs: With debit-card use declining and UPI dominating volume, banks and payment processors need to reassess how they monetise retail payments. Merchant discount rates (MDR), interchange fees, etc., may evolve. The decline in debit-card usage also raises questions about how banks will sustain associated fee income.
3. Risk and stability: With RTGS handling such large values, ensuring the stability, resilience and security of that rail remains critical. Simultaneously, as UPI volumes balloon, operational reliability, cybersecurity, fraud-resilience become paramount. The RBI has noted frauds in digital payments and is tightening rules accordingly.
4. E-commerce / online growth vs offline small ticket: The divergence between card and UPI usage suggests different use-cases. Cards (especially credit) remain relevant in online, higher-ticket contexts; UPI is becoming the default for “everyday” small-ticket payments. Debit cards appear squeezed in between.
5. Policy/regulation: The RBI’s data demonstrate that its digital payments strategy (via regulatory frameworks, infrastructure development, push for UPI adoption) is bearing fruit. But it also implies that the regulator must adapt to evolving risks: fraud, cross-border linkages, offline payments, system governance.

5. Conclusion

In summary, the RBI’s latest data paint a clear picture of a payments ecosystem in transition. The UPI platform has emerged as the dominant form for payments in terms of volume, essentially capturing the mass retail market for digital payments. At the same time, RTGS remains the backbone for large-value transfers, holding the lead in value terms. Meanwhile, the traditional debit-card channel is seeing a noticeable decline, a sign that users are shifting away from older payment instruments toward newer digital rails.

For stakeholders — banks, merchants, fintechs, regulators — the message is unequivocal: the payment landscape is evolving rapidly. Success will depend on adapting business models, ensuring technological and operational resilience, and aligning with the broader shift toward digital, real-time, inexpensive, and inclusive payment modes.