A new report from the Reserve Bank of India (RBI) confirms that India has achieved near-total digital saturation in its financial ecosystem, with digital transactions now accounting for 97.6% of total payment value in 2024–25. As paper-based instruments like cheques dwindle to just 2.4%, the central bank is shifting its focus from “promotion” to “protection” through a series of aggressive regulatory mandates.
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1. The Digital Surge: Volume vs. Value
While digital adoption is universal, the RBI report highlights a clear divide in how different platforms are used:
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The “Small-Ticket” Revolution: Digital payment volumes grew by 35%, largely driven by UPI. The average value of a retail digital transaction dropped to ₹3,830 (down from ₹4,382), indicating that Indians are now using digital modes for even the smallest daily purchases.
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UPI vs. RTGS: UPI dominates 85% of transaction volume, making it the king of retail. However, RTGS remains the backbone of the economy by value, handling 69% of the total transaction value despite accounting for only 0.1% of the volume.
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The Card Shift: Credit card usage continues a steady climb, while debit card transactions have entered a consistent decline as users migrate to UPI-linked bank accounts.
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2. Payment Aggregators: New “Infrastructure” Status
On September 15, 2025, the RBI issued a landmark Master Direction that reclassifies Payment Aggregators (PAs) from mere “pipes” to critical financial infrastructure.
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Three Categories: PAs are now formally split into PA-Online, PA-Physical (for POS terminals), and PA-Cross Border (for international trade).
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Capital & Governance: Non-bank PAs must maintain a net worth of ₹15 crore at the application stage, rising to ₹25 crore within three years. Promoters must also meet “fit and proper” criteria similar to bank directors.
3. AePS Security: Stricter Norms from Jan 1, 2026
To combat rising biometric fraud, the RBI’s June 27, 2025 directive introduces “bank-grade” security to the Aadhaar Enabled Payment System (AePS), effective this week:
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Mandatory Re-KYC: Any AePS Touchpoint Operator (ATO) who remains inactive for three consecutive months must undergo fresh KYC before resuming operations.
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Real-Time Monitoring: Acquiring banks must now monitor operators for “velocity” (too many transactions in a short time) and location-based risks to prevent identity theft.
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