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The Payment System Report – December 2024 is a bi-annual publication by the Reserve Bank of India (RBI).

It analyses trends in digital and retail payment systems over the last five calendar years (up to CY-2024) and highlights India's transformation into a global leader in payment innovation and inclusion.

Growth in Digital Transactions

• Exponential Growth: Digital payment transactions rose 94 times in volume (from 222 crore in 2013 to 20,787 crore in 2024) and 3.5 times in value (from ?772 lakh crore to ?2,758 lakh crore).
• Recent CAGR (2019–2024):
  • Volume: 45.9% CAGR
  • Value: 10.2% CAGR
• Retail Digital Payments: From 162 crore transactions in FY13 to 16,416 crore in FY24 — a 100-fold increase in 12 years.
• Digital Payments Index (DPI): Surged from a base of 100 in March 2018 to 445.50 in March 2024, indicating massive digital adoption.

UPI: A Game-Changer

• Launched in 2016 by NPCI, UPI has revolutionized mobile-based payments.
• CAGR (Last 5 Years):
  • Volume: 74.03%
  • Value: 68.14%
• Monthly Transactions: UPI processes over 16 billion transactions monthly, ranking among the largest globally.
• Inclusive Innovations:
  • UPI Lite & UPI Lite X: For offline/small-value payments.
  • UPI123Pay: For feature phone users.
  • UPI 2.0: Includes auto-debit and recurring payment functionalities.

Credit and Debit Card Trends

• Credit Cards:
  • Growth: More than doubled from 5.53 crore (Dec 2019) to 10.80 crore (Dec 2024).
• Debit Cards:
  • Stable Usage: Marginal increase from 80.53 crore to 99.09 crore in the same period.

Cross-Border Payment Integration

• RBI is actively enhancing cross-border payments by integrating India's UPI with international Fast Payment Systems (FPSs), addressing high costs, delays, and limited access.
• Key Developments:
  • UPI-PayNow Linkage (Feb 2023): India-Singapore real-time cross-border payments.
  • UPI-enabled QR Payments: Available in Bhutan, France, Mauritius, Nepal, Singapore, Sri Lanka, UAE.
• Project Nexus:
  • A BIS-conceptualized multilateral project.
  • Aims to interlink FPSs of India, Malaysia, Philippines, Singapore, and Thailand for seamless retail payments.

Institutional and Legal Framework

• Legal Backbone: Payments and Settlement Systems Act, 2007 (PSS Act) empowers RBI to:
  • Regulate, supervise, and license payment system operators.
  • Authorize systems like NPCI, card networks, ATM operators, etc.
• Governing Body:
  • Board for Regulation and Supervision of Payment and Settlement Systems (BPSS) under RBI.
  • Chairperson: RBI Governor; Vice-Chairperson: Deputy Governor (in charge of DPSS).
• Payment Ecosystem Entities:
  • RBI-regulated: RTGS, NEFT, Cheques (CTS).
  • NPCI-managed: UPI, IMPS, AePS, BBPS, NETC, NACH, Cards.
  • Other PSOs: TReDS, PPIs.

Strategic Significance

• Financial Inclusion: Payment systems are critical tools for promoting inclusive growth by ensuring last-mile delivery of services and direct benefit transfers.
• Global Competitiveness: RBI’s regulatory foresight and innovation have placed India among the global frontrunners in digital payments.