In the fiscal year 2024-25 (FY25), India's Unified Payments Interface (UPI) achieved a record 185 billion transactions, marking a 41% year-on-year growth. However, this figure falls short of the government's ambitious target of 200 billion transactions for the year.
UPI Government Target
To promote UPI digital payments and achieve the 200 billion transaction goal, the government allocated ₹1,500 crores under the 'Incentive Scheme for Promotion of Low-Value BHIM-UPI Transactions (P2M)'. This scheme offered small merchants a 0.15% incentive on UPI transactions up to ₹2,000 during FY25.
“Promotion of indigenous UPI platform. Achieving the target of 20,000 crores total transaction volume in FY 2024-25,” the statement on the PM India website said.
UPI Performance in FY25
Despite these efforts, some industry stakeholders believe the allocated funds were insufficient to meet the target. Vishwas Patel, Joint MD of Infibeam Avenues and Chairman of the Payment Council of India, suggested that introducing a low merchant discount rate (MDR) could have further incentivized digital transactions.
India UPI Target FY25 - 26
In March 2025, UPI set a new record by processing 17.73 billion transactions, a 10.1% increase from February. Daily transaction values also surpassed ₹1 lakh crore for the first time, highlighting the platform's rapid growth and adoption.
These developments underscore UPI's pivotal role in India's digital payment landscape, reflecting both significant progress and the challenges in achieving set targets.
Also Read: NPCI to deactivate UPI IDs linked to inactive numbers from April 1
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