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Re 1 rise in UPI value trims debit card use by 14 paise: SBI Report
'It has been observed through time-series analysis from January 2021 to May 2025 that a Re 1 increase in UPI transactions actually reduces the value of debit card transactions by 14 paise,' the report noted.
This comes at a time when UPI has solidified its dominant position in India's digital payments ecosystem and is gradually replacing debit card usage.
The share of UPI in retail demand for money—covering both UPI transactions and debit card ATM withdrawals—has increased from 40 per cent in November 2019 to 62 per cent in January 2021. By May 2025, this share had surged to 91 per cent, underscoring UPI's growing role in replacing cash, the report added.
In January 2021, UPI recorded 2.07 billion transactions, processing Rs 3.86 trillion in value. By May 2025, the volume grew sixfold to 18.67 billion transactions, amounting to Rs 25.08 trillion, according to data from the National Payments Corporation of India (NPCI).
In FY21, the volume of debit card transactions stood at 4.02 billion, worth Rs 6.62 trillion. This figure has decreased by nearly a quarter in volume, dropping to 1.61 billion transactions with a total value of Rs 5 trillion, according to data from the Reserve Bank of India (RBI).
The report also highlighted that state-owned banks were the leading remitter members, while private sector banks were primarily the beneficiary members.
The State Bank of India (SBI) topped the list of remitter banks with 5.2 billion UPI transactions, followed by HDFC Bank with 1.5 billion and Bank of Baroda with 1.3 billion in July 2025.
Yes Bank led the beneficiary banks with 7.9 billion UPI transactions, followed by SBI at 1.96 billion and Axis Bank at 1.94 billion in the same month.
Maharashtra leads the UPI landscape in India with a 9.8 per cent share of total UPI payments, followed by Karnataka at 5.5 per cent and Uttar Pradesh at 5.3 per cent.
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