The Growth of UPI Transactions and the Cashless Economy in India: A Study with Reference to the Reserve Bank of India

Abstract: The Unified Payments Interface (UPI), launched by the National Payments Corporation of India (NPCI) in 2016, has become the backbone of India's transition towards a cashless economy. This research article examines the growth trajectory of UPI transactions between 2020 and 2026 using secondary data published by the Reserve Bank of India (RBI) and the NPCI. Employing growth analysis, percentage analysis, comparative analysis and graphical analysis, the study evaluates month-wise and year-wise trends in UPI transaction volume and value, and benchmarks UPI's performance against debit cards, credit cards and ATM cash withdrawals. The findings indicate that UPI transaction value grew from approximately ₹41.04 lakh crore in 2020-21 to ₹2.61 crore crore (₹260.57 lakh crore) in 2024-25, registering a compound rise in its share of total digital payment value from 6.00% to 38.10% over the period. Comparative analysis shows that UPI's growth rate has consistently outpaced debit card and credit card transaction growth, while ATM-based cash withdrawals have declined in absolute terms since 2022-23. These results confirm UPI's role as the dominant and preferred mode of digital payment in India and offer evidence-based implications for policymakers, banks and fintech stakeholders seeking to deepen financial inclusion.

Keywords: Unified Payments Interface (UPI), Cashless Economy, Digital Payments, Reserve Bank of India, Financial Inclusion, Growth Analysis, Comparative Analysis, NPCI