UPI takes the crowds, RTGS takes the cash: RBI payment report on a tale of two systems

Unified Payments Interface (UPI) remains dominant in India's digital payments landscape, with no competitors in sight. According to the Reserve Bank of India’s (RBI's) Payment Systems Report of June 2025, it mentioned that UPI handled a significant 84.8% of all payment transactions by volume in the first half of 2025, making it the most popular method Indians use to send and spend money.

The report states that UPI accounted for the largest share—85%—of transactions by count, highlighting its unmatched popularity among citizens who prefer speed, convenience, and smartphone-based payments.

However, this people’s favourite isn’t yet the financial heavyweight in terms of money moved. The same report notes that UPI accounted for only 9.1% of total payment value in H1 2025, indicating that most transactions are small everyday spends—the tap-here, scan-there rhythm of India’s streets and screens. As the report states, “UPI processed a very large number of small-value transactions,” making volume its domain, even if big-ticket transfers remain rare.

Talking about that heavyweight status, it is held by RTGS payment mode, which serves as the silent banker of Indian payment system.

The report indicates that the Real Time Gross Settlement (RTGS) system accounted for a staggering 68.7% of payment value in the same period, despite only making up 0.1% of transaction volume.

As noted in the report, “RTGS recorded the largest share of 69% in terms of value but accounted for the lowest share of 0.1% in terms of volume,” illustrating its importance in high-value and wholesale payments.

The difference lies in the purpose each system serves. RTGS, with its minimum transaction size of ₹2 lakh, supports corporate transfers, government transactions, market settlements, and large financial flows that keep the country’s economy active. The report explains that RTGS is “a large value payment system… resulting in higher value but fewer transactions than other payment systems,” the behind-the-scenes machinery of serious money.

Together, UPI and RTGS illustrate India’s two-engine payments system. One is powered by millions of daily transactions — the QR code at the tea stall, the autorickshaw ride, the online grocery cart and so on. The other involves the large flows that sustain banks, institutions, and markets. The RBI’s report clearly shows coexistence, not competition, with small money growing rapidly alongside large money anchored by institutional trust.