RBI Tightens Grip as Digital Payments Soar to 98% of Total Transactions

• India's digital payments grew 17.9% in value, reaching 97.6% of total payments in 2024-25, with paper-based instruments at just 2.4%.
• Digital payment volumes expanded 35%, driven by low-value transactions, reducing the average retail digital payment value to Rs 3,830.
• RBI issued Master Direction on Payment Aggregators (Sept 15, 2025) for formal authorization, capital requirements, KYC/AML, and escrow regulation.
• Stricter due diligence and risk management norms for AePS Touchpoint Operators (effective Jan 1, 2026) mandate full KYC and continuous transaction monitoring.
• RBI is expanding UPI's global footprint through bilateral arrangements and offering RuPay technology to other countries, positioning India's digital infrastructure as a global public good.

Why It Matters: RBI strengthens oversight and expands global reach as India's digital payments dominate, nearing 98% of transactions.