Digital Payments Surge 35%! RBI’s E-Rupee Gains Unstoppable Momentum

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India’s digital payments ecosystem continues its meteoric rise, recording a 35% year-on-year increase in transaction volume for FY 2024-25. The Reserve Bank of India’s (RBI) digital rupee (eRs) has gained significant traction, with its circulation volume doubling and transaction value quadrupling as of April 2025.

The latest RBI bulletin highlights robust growth across major digital payment channels, including UPI, NEFT, BBPS, and NETC, despite occasional technical disruptions. Real-Time Gross Settlement (RTGS), a key indicator of economic activity, also posted double-digit growth in both transaction volume and value.

Credit card spending hit a record ₹2.01 lakh crore in March 2025, with the number of cards in circulation growing 7.94% year-on-year, reaching 109.8 million. While digital payments expanded at 44.3% in volume during FY 2023-24, the latest figures indicate a slight moderation but continued strong momentum.

The eRs is emerging as a cornerstone of India’s digital financial strategy, with increasing adoption in both retail and wholesale sectors. Experts view this as a critical step toward a digitally inclusive economy, reinforcing the RBI’s push to modernize India’s monetary system.

As digital transactions deepen, the eRs is expected to play a pivotal role in shaping India’s financial future, strengthening infrastructure and boosting confidence in digital currency adoption.

Sources: BusinessWorld, Business Standard.