RBI's Payments Vision 2025

RBI recently published a report on its vision for payments by 2025.

Here’s some highlights from the same :

Ten expected outcomes by 2025 :

i. Volume of cheque-based payments to be less than 0.25% of the total retail payments;

ii. More than 3x increase in number of digital payment transactions;

iii. UPI to register average annualised growth of 50% and IMPS / NEFT at 20%;

iv. Increase of payment transaction turnover vis-à-vis GDP to 8;

v. Increase in debit card transactions at PoS by 20%;

vi. Debit card usage to surpass credit cards in terms of value;

vii. Increase in PPI transactions by 150%;

viii. Card acceptance infrastructure to increase to 250 lakh;

ix. Increase of registered customer base for mobile based transactions by 50% CAGR;

and x. Reduction in Cash in Circulation (CIC) as a percentage of GDP.

1. Linking credit card and other credit components of banking products to UPI

UPI transactions have been growing by leaps and bounds at the cost of other retail payments, especially card transactions. One of the reasons for its popularity is the convenience and seamless experience it offers to users. Currently, a UPI user can only link the bank account (savings / current account) and the debit card to the UPI Virtual Payment Address (VPA). To offer more avenues and greater convenience to users in making payments through UPI platform, feasibility of linkage of credit cards and credit components of banking products to UPI shall be explored.

2. Exploring alternatives to OTP based authentication in digital payments

Considering emerging concerns with OTP-based authentication in terms of increasing cases of phishing / vishing / smishing modes for divulgence of customer confidential details, alternate risk-based authentication mechanisms leveraging behavioral biometrics, location / historical payments, digital tokens, in-app notifications, etc., shall be explored.

3. Increase in market trading and settlement hours

The money market and capital market currently operate at fixed hours. However, the RTGS and NEFT payment systems which enable settlements in these markets, operate on a 24x7 basis. With a view to leverage the availability of payment systems on a 24x7x365 basis, extension of trading hours of these markets to enable longer market availability for trading and settlement shall be facilitated, in conjunction with the concerned market departments of the Reserve Bank. This shall enhance efficiency and further price discovery in these markets.

4. Regulation of bigtech and fintechs in payments space

BigTechs and FinTechs play an invigorating role in onboarding new users and customising payment experience. Given their increasingly dominant role in payments ecosystem, a discussion paper on the need for proportionate regulation by the Reserve Bank encompassing domestic incorporation, reporting, data use, etc., shall be published.

5. Exploring guidelines for BNPL Products and services

BNPL services have developed into a new payment mode alongside the existing payment modes like cards, UPI, and net banking. This channel, facilitated by a few payment aggregators, leverages the existing nodal account (escrow account after authorisation) to route payments between a BNPL customer and a merchant. This novel method shall be examined, and issuance of appropriate guidelines on payments involving BNPL shall be explored.

6. Taking UPI global

The potential of UPI has been recognised world over by numerous authorities. Reserve Bank shall actively support the global outreach initiatives to expand the footprint ofdomestic payment systems by collaborating with relevant stakeholders (e.g. Central Banks,BIS, World Bank, other institutions, etc.).

Which ones are you looking forward to the most among the above objectives of RBI ?


Taking UPI global


As a trader, I am concerned in what type of trading hour increase, they are looking at?

Currently Equity markets trade from 9:15 to 3:30. 6 hour and 15 minutes. Does anyone has more information or guesses regarding this?


It will most likely be for money markets


If RBI achieves this, I think it would be great in the world of finance.

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That is something good to know! RBI’s Payments Vision will enable secure and seamless transactions.

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Looks like ur prediction will be right soon ankit :slight_smile:

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Targetting NRIs isn’t enough. UPI should be used by foreigners for day to day transactions just like we use their MasterCard/Visa/Amex etc. That will be something to be proud of for our country.

There is a security issue with card tokenization.

I have saved my credit card (tokenization) in amazon and while placing order I entered wrong cvv it redirected me to bank website to enter OTP.

I received OTP and submit it and it redirected me to amazon website with confirmation that order has been placed successfully and received message from bank regarding deduction.

earlier whenever I enter wrong cvv on amazon, it redirect to bank OTP page and order placed successfully but after few minutes I received email from amazon that there is an issue with payment but this time order placed successfully and I received message from bank regarding deduction.

I wish RBI looks at encouraging offline shops to accept debit & credit cards more, rather than just UPI.

Also, UPI should somehow be enabled for feature phones without internet connectivity.

Hi, the retail shops actually don’t have a prblem with card payments, in fact they want 'em too, but they aren’t happy with bank charges on those, therefore they don’t accept those. The govt already bears UPI charges, which is in fact a govt fcility so they have to not pay bank profits, only infrastructural cost is there, why would the government pay extra money to banks when they can offer their in-house UPI?

About offline UPI, it already exists. Google “UPI Lite”.

This I know. I’m talking about UPI for “feature phones” (which cannot have apps like Gpay) with no or poor internet.

Sorry I confused UPI *99# with UPI Lite. On feature phones “UPI *99#” can be used from dialer app.

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