With EnFin, we bring you timely insights into India’s fintech landscape from policy moves and regulatory updates to digital innovation and cross-border trends. This monthly edition compiles the most significant highlights from the past few weeks, helping you stay informed about the rapid shifts shaping the future of finance.
UPI Transactions Grow 35% in H1 2025; Merchant Payments Expand Faster
UPI volumes reached 106.36 billion in H1 2025, a 35% year-on-year rise. Merchant (P2M) transactions grew 37% and touched nearly 67 billion, while person-to-person (P2P) payments rose 31%. The aggregate value surged 23% to ₹143.34 trillion, underscoring the rapid expansion of merchant-led digital payments.
Originally posted by Moneycontrol
Gujarat Traffic Fines Now Payable via UPI Apps
The Gujarat government enabled traffic-fine payments through leading UPI apps such as Google Pay, PhonePe, BHIM Pay and YONO by integrating with the Bharat Bill Payment System (BBPS) and the ‘One Nation One Challan’ portal—boosting digital collections and transparency.
Originally posted by The Times of India
After KYC Comes KYV – and Users Are Frustrated
A new regulatory requirement called “Know Your Vehicle” (KYV) mandates vehicle owners to undergo verification for FASTag-linked accounts, superseding earlier KYC norms. Many users report frustration over what they view as an added layer of compliance in everyday mobility/finance tasks.
Originally posted by The Times of India
Industry Body Warns: Over 80% of UPI Volumes Handled by Two Apps
The India Fintech Foundation has written to the Ministry of Finance and the RBI, asserting that two third-party UPI apps account for more than 80% of UPI volumes. The body called for regulatory intervention to curb market dominance, protect smaller players and strengthen systemic resilience.
Originally posted by Moneycontrol
Dubai Enables Global Digital Wallet Payments Including UPI QR
The Dubai Department of Finance has expanded its payments ecosystem to accept Apple Pay, Google Pay, Alipay, WeChat Pay and India’s UPI QR codes for government services via the DubaiNow and DubaiPay apps. The move deepens India’s digital-payment footprint abroad.
Originally posted by Dubai Media Office
RBI Proposes Same-Day Credit for Cross-Border Payments
The RBI issued a draft circular requiring banks to credit inward cross-border remittances to beneficiary accounts on the same business day if received during FX-market hours (and next-day otherwise). The proposal aims to reduce settlement delays and boost remittance efficiency.
Originally posted by The Indian Express
ICICI Prudential Life Enables Premium Payments via Banking Connect
ICICI Prudential Life Insurance Company has integrated with the NPCI Bharat BillPay platform’s Banking Connect feature, enabling policy-holders to pay premiums directly via any participating bank app—removing the separate internet-banking step and streamlining the user experience.
Originally posted by Moneycontrol
UPI Records ₹1.02 Lakh Crore in Diwali Transactions
During Diwali eve, UPI payments surged past ₹1.02 lakh crore, marking a strong uptick in festive-season digital spend. In October, average daily transactions climbed about 13% to ₹94,000 crore, bolstered by e-commerce activity and reduced GST rates on seasonal categories.
Originally posted by Business Today
Japan to Accept UPI for Indian Tourists
Japan will soon enable Indian visitors to make payments using UPI by scanning QR codes at local merchants. A tie-up between NPCI International Payments Ltd (NIPL) and NTT DATA Japan will allow UPI’s global expansion to one of Asia’s major tourist destinations. Originally posted by Business Standard
NPCI Launches “UPI Help” AI Assistant
NPCI introduced UPI Help, an AI-powered support assistant designed to process payment-related queries, track grievances, and automate autopay-mandate management. The tool is aimed at improving post-payment service experience and streamlining complaints/mandates across the UPI network.
Originally posted by News18
Digital Payments Form 99.8% of All Transactions; UPI Leads with 85% Share
According to the RBI’s Payment System Report, digital-payment channels made up 99.8% of transaction volumes in early 2025, and UPI alone accounted for 85% of these volumes. In value terms, digital channels represented 97.7%, while RTGS continued to dominate very high-value flows.
Originally posted by NDTV
NPCI Reports Minor Glitches in Same-Day Cheque Clearing
NPCI’s newly launched same-day (T+0) cheque-clearing system, which started on 4 October, processed over 2.56 crore cheques amounting to ₹3.01 lakh crore despite some initial teething issues. The regulator is guiding banks to credit beneficiary accounts post-confirmation as stabilization proceeds.
Originally posted by Business Standard
India Introduces Digital Rupee for Offline Payments
The RBI rolled out the retail version of the digital rupee (e₹) supporting wallet-to-wallet transfers even without mobile data a novel feature using NFC or minimal-connectivity cricket-tech. The aim is to expand payment access in underserved, low-connectivity regions.
Originally posted by The CSR Journal
NPCI Introduces Biometric Authentication for UPI Payments
The NPCI has enabled biometric authentication such as fingerprint and facial recognition, for UPI payments on devices, moving away from relying solely on PINs. This development aligns with RBI’s guidelines for stronger authentication in digital payments and is expected to enhance security and user experience across India’s digital-payments ecosystem. Originally posted by Moneycontrol
India to Launch RBI-Backed Digital Currency, Warns Against Unbacked Cryptos
Union Minister Piyush Goyal announced that India will soon launch a digital currency backed by the RBI, aimed at enabling secure and traceable payments. He further stated that private cryptocurrencies lacking asset backing will continue to be discouraged and face heavy taxation. The move signals India’s push into central-bank digital currency (CBDC) territory.
Originally posted by The Economic Times
NPCI Unveils Four New UPI Features at GFF 2025
At the Global Fintech Festival, NPCI launched four new UPI-related offerings: • UPI Reserve Pay (a credit feature) • UPIHELP (AI-driven support) • IoT Payments via UPI (device-based payments) • Banking Connect (simplified banking interface). These innovations aim to broaden UPI’s scope beyond basic transfers and deepen use-case penetration.
Originally posted by Inc42
Unified View & Portability for UPI Coming by Year-End
NPCI plans to roll out a unified view and portability feature for UPI by year-end, allowing users to link and view multiple UPI accounts across apps and migrate seamlessly between them. The feature is expected to simplify user experience and enhance interoperability within India’s payments ecosystem.
Originally posted by Times Now News
RBI Affirms UPI Transactions Will Remain Free
RBI Governor Sanjay Malhotra confirmed that there is no proposal to levy charges on UPI transactions, putting to rest concerns of potential fees. He also projected strong economic growth of 6.8 percent for FY 2025–26, reaffirming confidence in India’s long-term digital growth story.
Originally posted by Hindustan Times
SEBI and NPCI Launch Verified UPI Handles to Curb Scams
To combat payment fraud, SEBI and NPCI rolled out “@valid” UPI handles for brokers and mutual funds. Major intermediaries covering more than 90 percent of investors have already adopted the verified system, strengthening investor trust and transaction safety.
Originally posted by NDTV Profit
SEBI Survey Finds Awareness Up, Participation Low
SEBI’s 2025 Investor Survey revealed that while 63 percent of households are aware of market products, only 9.5 percent actively invest. Complexity, perceived risk, and limited trust remain major barriers to deeper retail participation.
Originally posted by The Economic Times
RBI Raises Loan Limits on Shares and IPO Financing
The RBI increased loan limits against shares to ₹1 crore and IPO financing to ₹25 lakh per investor to boost market liquidity and retail participation amid robust IPO momentum.
Originally posted by The Indian Express
September Sees Slight Drop in UPI Volume but Higher Value
In September, UPI transaction volumes fell by roughly 2% to 19.63 billion, while the total value of transactions rose marginally to ₹24.90 lakh crore. This indicates that although fewer transactions were processed, the average ticket size increased, suggesting that larger payments are being made via UPI more frequently.
Originally posted by CNBC-TV18
This concludes our October roundup of EnFin. From policy shifts to product breakthroughs, the pace of change in fintech shows no sign of slowing. We’ll continue bringing you these timely insights through EnFin each month. Don’t miss the weekly highlights.
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