New Delhi – India has witnessed over 65,000 crore digital transactions between FY2020 and FY2025, amounting to more than ₹12,000 lakh crore, the Parliament was informed on Monday.
Minister of State for Finance Pankaj Chaudhary, in a written reply to a question in the Lok Sabha, said the government has been actively working with key stakeholders like the Reserve Bank of India (RBI), National Payments Corporation of India (NPCI), fintech companies, banks, and state governments to promote digital payment adoption across the country, especially in tier-2 and tier-3 cities.
To boost digital infrastructure in remote areas, the RBI set up the Payments Infrastructure Development Fund (PIDF) in 2021. This initiative focuses on expanding digital payment acceptance in tier-3 to tier-6 cities, the Northeast, and Jammu & Kashmir.
As of May 31, 2025, the fund has facilitated the deployment of around 4.77 crore digital touchpoints across the country.
To track the growth of digital payments, the RBI has developed the Digital Payments Index (RBI-DPI). According to the latest data, the index stood at 465.33 in September 2024, indicating strong progress in the adoption and performance of digital payments.
The minister noted that platforms like UPI have empowered millions—including small vendors and rural users—to accept digital payments, reducing reliance on cash and increasing participation in the formal economy.
Efforts to support small businesses and MSMEs have included:
- Rationalisation of Merchant Discount Rate (MDR) for debit card transactions,
- Implementation of Trade Receivables Discounting System (TReDS) guidelines to help MSMEs get competitive invoice discounts,
- Incentive programmes to encourage low-value BHIM-UPI transactions among small merchants.
The minister emphasized that the rise in digital payments has significantly improved access to formal financial services, especially for underserved communities. By enabling secure, transparent, and traceable transactions, platforms like UPI have created a strong financial identity for both individuals and businesses.
With inputs from IANS