The Reserve Bank has published the Payment Systems Report for December 2024. The report covers significant developments in the payment ecosystem and provides an in-depth analysis of UPI, besides analysing trends in payment transactions carried out using various payment systems in India over the last five calendar years to the year 2024. Thereafter, the report will be published on RBI’s website on a half-yearly basis.RBI has also participated in Project Nexus, a multilateral international initiative to enable instant cross-border retail payments by interconnecting domestic fast payment systems of several countries. Payments to merchants have been enabled using Indian UPI apps through QR codes in Bhutan, France, Mauritius, Nepal, Singapore, Sri Lanka and UAE.
Key findings of the Payment Systems Report
Digital Payment Transactions
- In 2013, there were 222 crore digital transactions in India, with a total value of ₹772 lakh crore.
- By 2024, the number of digital transactions is expected to grow 94 times and the value of transactions is expected to grow 3.5 times.
Unified Payment Interface (UPI)
- UPI transaction volume witnessed a compound annual growth rate (CAGR) of 74.03% over the last five years.
- UPI transaction value recorded a CAGR of 68.14%.
Credit and Debit Cards
- The number of credit cards has more than doubled in the last five years.
- The number of debit cards has remained stable over the last five years.
Global Trends
- India has joined Project Nexus to interlink the Fast Payment Systems (FPS) of ASEAN countries (Malaysia, Philippines, Singapore and Thailand).
- Project Nexus, introduced by the Bank for International Settlements (BIS), enables instant cross-border retail payments by linking domestic FPSs.
Payment Systems in India:Definition:
- Payment systems are mechanisms established to facilitate settlement and clearing of monetary and financial transactions.
Regulation of Payment Systems in India
Payments and Settlement Systems Act, 2007 (PSS Act):
- This Act empowers RBI to regulate and supervise payment systems in India.
Under this, RBI is empowered to issue licences/approvals to:
- Clearing Corporation of India Limited (CCIL)
- NPCI (National Payments Corporation of India)
- Card payment networks and ATM networks
Board for Regulation and Supervision of Payment and Settlement Systems (BPSS):
- It is the apex policy-making body on payment systems established by RBI under the PSS Act.
- Chairman: RBI Governor
- Vice Chairman: Deputy Governor in charge of DPSS (Department of Payment and Settlement Systems).