The digital payment landscape in India has seen explosive growth over the past six years. Transactions have crossed a staggering 65,000 crore, amounting to over Rs 12,000 lakh crore. This massive shift highlights the country’s rapid adoption of digital financial solutions.
The government has been working closely with stakeholders like the RBI, NPCI, fintech firms, and banks to push digital payments beyond metro cities. Tier-2 and tier-3 cities are now key focus areas. Minister of State for Finance Pankaj Chaudhary shared these details in a recent Lok Sabha reply.
To boost infrastructure in smaller cities, the RBI launched the Payments Infrastructure Development Fund (PIDF) in 2021. By May 31, 2025, this initiative had deployed 4.77 crore digital touch points across tier-3 to tier-6 cities, North-Eastern states, and Jammu & Kashmir.
The Union Budget 2024-25 introduced a New Digital Credit Assessment Model for MSMEs. Public sector banks are now building in-house capabilities to assess credit using digital footprints instead of relying on external agencies. This model went live on March 6, 2025, and has already sanctioned 98,995 MSME loans as of July 15, 2025.
How does it work? The system pulls verified data from multiple sources like PAN authentication, GST records, bank statements, and ITR verification. It automates loan appraisal and ensures objective decision-making for both new and existing MSME borrowers.
On the forex front, India’s reserves remain robust at USD 668.3 billion as of March 2025. This covers about 11 months of imports and 90.8% of external debt. By July 11, 2025, reserves had climbed to USD 696.7 billion. The RBI has taken measures to attract foreign inflows, like easing FPI limits and introducing special rupee accounts for non-residents.
In another development, the Indian Banks’ Association proposed making all Saturdays banking holidays. Currently, only the second and fourth Saturdays are off under the Negotiable Instruments Act. Meanwhile, public sector banks report a 96% staff fulfilment rate as of March 2025, with gaps mainly due to retirements and resignations.
Digital transactions continue to reshape India’s financial ecosystem. With government support and innovative models, the momentum shows no signs of slowing down.