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Business Standard
7 days ago
- Business
- Business Standard
Government and other financial institutions take up multiple initiatives to promote digital payment transactions
The Government, Reserve Bank of India (RBI) and National Payment Corporation of India (NPCI) have been taking up various initiatives to promote digital payment transactions, the finance ministry stated in an update. These inter alia, include incentive scheme for promotion of RuPay Debit Cards and low-value BHIM-UPI transactions (P2M), Payments Infrastructure Development Fund (PIDF) to support deployment of digital payment infrastructure in underserved regions. Further, to prevent payment-related frauds, various initiatives have been taken up such as device binding between the customer's mobile number and device, two-factor authentication through PIN, daily transaction limits, and restrictions on use cases. NPCI also provides a fraud monitoring solution to all the banks to generate alerts and decline transactions using AI/ML-based models. RBI and banks have been conducting awareness campaigns through short SMS, radio campaigns, and publicity on the prevention of cyber-crime.
The Print
01-08-2025
- Business
- The Print
Over six-fold spike in digital transactions since 2019-20, govt informs Parliament
'RBI set up a Payments Infrastructure Development Fund (PIDF) in 2021 to encourage deployment of digital payments acceptance infrastructure in tier-3 to 6 cities, North-Eastern States and Jammu & Kashmir. As on May 31, 2025, around 4.77 Crore digital touch points have been deployed through PIDF,' Chaudhary said in his reply. The data was provided by Minister of State (MoS) for Finance Pankaj Chaudhary in a written response in Lok Sabha to a question asked by three Shiv Sena MPs—Shrikant Eknath Shinde, Naresh Ganpat Maske, Ravindra Dattaram Waikar—and Lok Janshakti Party MP Shambhavi Choudhary, New Delhi: The volume of digital transactions in the country grew more than six-fold from 3,401 crore in 2019-20 to to 22,198 crore in 2024-25, the government has informed Parliament. During the same period, the total value of money transacted recorded a nearly 77 percent growth to reach Rs 2,862 lakh-crore from Rs 1,619 lakh-crore. The RBI has developed the Digital Payments Index (RBI-DPI) to measure the extent of digitisation of payments across the country based on March as base year (Index 100). The index stands at 493.22 as of March 2025, representing a 10.7 percent growth from March 2024 value of 465.33. The data for the index is published by the RBI semi-annually, outlining the penetration of digital payments in the country. The index is based on five parameters, each given different weightages—payment enablers (25 percent), payment infrastructure- demand-side factors (10 percent), payment infrastructure-supply-side factors (15 percent), payment performance (45 percent) and consumer centricity (5 percent). Also Read: India, Russia in 'active discussion' over RuPay & MIR mutual transactions Uplifting MSMEs & under-served communities In his reply, Chaudhary outlined the initiatives undertaken by the government, the RBI and the National Payment Corporation of India (NPCI) to support MSMEs and under-served communities. The initiatives stated in the reply include promotion of low-value BHIM-UPI transactions among others. Earlier this year, the Union cabinet approved the Incentive Scheme for promotion of low-value BHIM-UPI transactions Person to Merchant (P2M), under which 0.15 percent of incentive will be provided to small merchants for transactions up to Rs. 2,000, the minister said. The purpose is to encourage small merchants to accept UPI payments. Chaudhary said digital payments have also played a critical role in uplifting under-served and un-served communities by providing them with a financial footprint that can be used to assess their credit worthiness in the absence of traditional documents. 'Digital platforms like UPI have enabled citizens including small vendors and rural users to accept digital payments, reducing cash dependency and increasing formal economic participation,' Chaudhary said. Due to the rise in digitisation of payments, more people can now access formal channels of credit thereby allowing their economic participation. (Edited by Ajeet Tiwari) Also Read: Rs 580 cr lost to digital payment frauds in last 5 yrs, only 43% recovered—govt to Parliament
Business Standard
29-07-2025
- Business
- Business Standard
India sees over 65,000 cr digital payment transactions amounting to Rs 12,000 lakh cr in last 6 years
India's digital payment landscape witnessed over 65,000 crore transactions amounting to more than Rs 12,000 lakh crore in the past six financial years, the ministry of finance stated on Monday. The Government has been closely working with different stakeholders including the Reserve Bank of India (RBI), National Payments Corporation of India (NPCI), fintechs, banks and State Governments to increase the adoption rates of digital payments in the country including in tier-2 and tier-3 cities. RBI has setup a Payments Infrastructure Development Fund (PIDF) in 2021 to encourage deployment of digital payments acceptance infrastructure in tier-3 to 6 cities, North-Eastern States and Jammu & Kashmir. As on May 31, 2025, around 4.77 Crore digital touch points have been deployed through PIDF, the ministry said. Transactions during the last six financial years, i.e. FY 2019-20 to FY 2024-25 have seen a phenomenal increase.
Mint
28-07-2025
- Business
- Mint
India logs 65K digital payments worth ₹12K trillion in 6 years, says govt
New Delhi: India logged over 65,000 crore digital payment transactions worth ₹ 12,000 trillion in the last six fiscal years—FY19 to FY25—marking a surge in the technology's adoption across the country, including small towns and rural areas, minister of state for finance Pankaj Chaudhary said on Monday. This has helped reduce cash dependency in the economy and increase formal economic participation. In a written reply to a question in the Lok Sabha, Choudhary said the government has been closely working with various stakeholders, including the Reserve Bank of India (RBI), National Payments Corporation of India (NPCI), fintechs, banks, and state governments to boost adoption of digital payments across the country. The RBI had set up a Payments Infrastructure Development Fund (PIDF) in 2021 to encourage deployment of digital payments acceptance infrastructure in small towns and cities and remote parts, including the northeastern states and Jammu & Kashmir, the minister said. As on May 31, around 4.77 crore digital touch-points had been deployed through the PIDF. The RBI has developed the Digital Payments Index (RBI-DPI) to measure the extent of digitization of payments across the country. The index, published semi-annually, pegs March 2018 as the base period (index = 100). As per the latest release, the RBI-DPI was at 465.33 for September 2024, reflecting continued growth in digital payment adoption, infrastructure, and performance across the country, the minister said. The government, the RBI and NPCI have taken various initiatives to support small businesses and micro, small and medium enterprises (MSMEs) to facilitate the adoption of digital payment systems to expand their customer base and improve efficiency, he said. These include an incentive scheme for promotion of low-value BHIM-UPI transactions for small merchants, Trade Receivables Discounting System (TReDS) guidelines that allow MSMEs to get their invoices discounted on its platform at competitive rates, and the rationalization of merchant discount rate (MDR) for debit card transactions. The growing adoption of digital payments has revolutionized access to financial services, particularly for the underserved and unserved communities. By enabling seamless, traceable transactions through platforms such as unified payments interface (UPI), digital payments have created a robust financial footprint for individuals and businesses, Choudhary said. These footprints also serve as alternative data points for financial institutions, allowing them to assess the creditworthiness of customers even in the absence of traditional documentation, he said. More people are thus able to access formal credit channels and enter the financial ecosystem.
India.com
28-07-2025
- Business
- India.com
India Records Over 65,000 Crore Digital Transactions Worth Rs 12,000 Lakh Crore From FY20 to FY25
New Delhi: Over 65,000 crore digital transactions have taken place in the last six financial years (FY20 to FY25), amounting to more than Rs 12,000 lakh crore, the Parliament was informed on Monday. The government has been closely working with different stakeholders including the Reserve Bank of India (RBI), National Payments Corporation of India (NPCI), fintechs, banks and state governments to increase the adoption rates of digital payments in the country including in tier-2 and tier-3 cities, said Pankaj Chaudhary, Minister of State for Finance, in a written reply to a question in Lok Sabha. RBI has set up a Payments Infrastructure Development Fund (PIDF) in 2021 to encourage the deployment of digital payments acceptance infrastructure in tier-3 to 6 cities, northeastern states and Jammu & Kashmir, the minister said. The minister said that as of May 31, 2025, around 4.77 crores digital touch points have been deployed through PIDF. The RBI has developed the Digital Payments Index (RBI-DPI) to measure the extent of digitisation of payments across the country. As a result, more people are able to access formal credit channels, which not only empowers economic participation but also brings more entities into the formal financial ecosystem. Digital platforms like UPI have enabled citizens, including small vendors and rural users, to accept digital payments, reducing cash dependency and increasing formal economic participation, the minister highlighted. As per the latest data, the RBI-DPI index stood at 465.33 for September 2024, reflecting continued growth in digital payment adoption, infrastructure, and performance across the country. In order to support small businesses and MSMEs in adopting digital payment systems to expand their customer base and improve efficiency, various initiatives have been taken by the government, RBI and National Payment Corporation of India (NPCI) from time to time, the minister said. These include, among other things, the rationalisation of the Merchant Discount Rate (MDR) for Debit Card Transactions, the Trade Receivables Discounting System (TReDS) guidelines that enable MSMEs to receive competitive discounts on their invoices on the TReDS platform, and an incentive programme for small merchants to promote low-value BHIM-UPI transactions. The growing adoption of digital payments has revolutionised access to financial services, particularly for underserved and unserved communities. By enabling seamless, traceable transactions through platforms like UPI, digital payments have created a robust financial footprint for individuals and businesses, the minister stated.
