Digital transactions could hit Rs 15 trillion a day by 2025: RBI

The digital transaction, payments through digital modes, is expected to jump to 1.5 billion transactions, worth Rs 15 trillion a day in five years, according to the Reserve Bank of India (RBI) estimates.

There are about a hundred million digital payments daily now which builds up to Rs 5 trillion worth of value. Just before the pandemic outbreak, the daily digital transactions were around 125 million a day. This is more than five times the volume digital transactions witnessed in 2016 June, said P Vasudevan, Chief General Manager for the Department of Payment and Settlement Systems at the RBI.

“5 million physical PoS or 20 million digital PoS will be upscaled many a time and this is really going to change how people look at digital payments”, said P Vasudevan, speaking on the side-lines the virtual Global Fintech Fest.
The RBI official was part of a panel on digital payments future at the Global Fintech Fest, organised by Fintech Convergence Council (FCC) and National Payments Corporation of India (NPCI).

Digital transactions include payments done through credit and debit cards, and various mobile payment modes like Unified Payment Systems (UPI).

The daily transactions were about 22 million in 2015. It comes to 58% in volume terms with a compounded annual growth rate of the last 5 years. This data could potentially indicate that one and a half billion daily digital payment could happen in 2025. That’s a phenomenal 15x jump from where we stand today, translating into a 3-fold jump in value at around Rs 15 trillion.

In India, digital transactions have the potential to reach 30-40 per cent of the gross domestic product (GDP), said Dilip Asbe, Managing Director & CEO, National Payments Corporation of India.