UPI, Digital Payments Boost Credit Access, Financial Inclusion: Economic Survey 2025-26
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Moneycontrol•29-01-2026, 12:50
UPI, Digital Payments Boost Credit Access, Financial Inclusion: Economic Survey 2025-26
- •The Economic Survey 2025-26 highlights UPI's crucial role in expanding credit uptake, especially in smaller towns, by providing transaction data for creditworthiness assessment.
- •India's digital payments ecosystem, led by UPI, achieved record highs in December 2025 for both transaction value (Rs 28 lakh crore) and volume (21.6 billion), solidifying its position as the default retail payment rail.
- •UPI acts as a catalyst for financial inclusion by converting basic bank account access into active financial participation, bridging the gap to formal credit through verifiable transaction histories and reduced costs.
- •Fintechs and banks leverage Digital Public Infrastructure (DPI) to expand lending across the risk spectrum, reaching new-to-credit borrowers previously excluded from formal finance.
- •The growth in credit linked to digital payments did not lead to higher default rates, as richer transaction data allowed lenders to identify underserved yet creditworthy borrowers effectively.
Why It Matters: UPI and digital payments are significantly enhancing credit accessibility and financial inclusion across India, especially in smaller towns.
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