As of November 2023, there were ** private and public banks licensed in India. In comparison to 2017, the number of public banks decreased due to merging activities. Until the market liberalization of the early 1990s, nearly all banks in India had been nationalized. Besides these major banks, there a nearly ******* urban and rural cooperative banks.

Digital banking has taken the financial world by storm, with the United States leading the charge. In 2024, the U.S. boasted an estimated **** million digital banking users, narrowly edging out Brazil's ** million. This digital banking revolution has spread globally, with countries like Russia, the United Kingdom, and India also seeing significant user adoption. The stark contrast between the top two countries and the rest of the world highlights the rapid growth and acceptance of digital banking in certain markets. Pandemic-driven acceleration The COVID-19 pandemic acted as a catalyst for digital banking adoption. In April 2020, ** percent of customers worldwide reported increased use of mobile banking apps compared to the previous year. While only ** percent expected to maintain this higher usage post-pandemic, the trend has clearly shifted towards digital banking solutions. This surge in adoption aligns with the growing number of digital banking users observed across various countries, indicating a lasting change in consumer banking habits. Leading digital banks WeBank, a Chinese digital bank, stands out as the leading digital bank in terms of users, with an impressive *** million customers reported at the end of 2024. Other major players include Rakuten with ***** million customers and Nubank with 100 million users. In Europe, Revolut was the digital bank with the widest customer base, with ** million customers at the end of 2024.

Key information about India Total Deposits

• India Total Deposits was reported at 2,544.196 USD bn in Dec 2024
• This records a decrease from the previous number of 2,563.981 USD bn for Sep 2024
• India Total Deposits data is updated quarterly, averaging 1,163.013 USD bn from Dec 1998 to Dec 2024, with 105 observations
• The data reached an all-time high of 2,563.981 USD bn in Sep 2024 and a record low of 153.496 USD bn in Dec 1998
• India Total Deposits data remains active status in CEIC and is reported by CEIC Data
• The data is categorized under World Trend Plus’s Global Economic Monitor – Table: Total Deposits: USD: Quarterly

Current and historical data on deposits of Scheduled Commercial Banks in India - demand and time deposits, NRI deposits, insured deposits, and PMJDY accounts.

India Digital Banking Industry By Total Number of Banks in India, By Total Deposits in India, By Total Digital Lending in India, By Total Transactional Value Paid Digitally in India, By Total Number of Transactions Paid Digitally in India, By Total Number of ATMs in India, Opportunities, Competition Forecast

The number of users in the 'Neobanking' segment of the fintech market in India was forecast to continuously increase between 2024 and 2028 by in total 4.9 million users (+29.42 percent). After the tenth consecutive increasing year, the indicator is estimated to reach 21.7 million users and therefore a new peak in 2028. Notably, the number of users of the 'Neobanking' segment of the fintech market was continuously increasing over the past years. The Statista Market Insights cover a broad range of additional markets.

India Mobile Banking Transactions: Volume data was reported at 17,117.198 Unit mn in Mar 2025. This records an increase from the previous number of 15,003.146 Unit mn for Feb 2025. India Mobile Banking Transactions: Volume data is updated monthly, averaging 245.260 Unit mn from Apr 2011 (Median) to Mar 2025, with 168 observations. The data reached an all-time high of 17,117.198 Unit mn in Mar 2025 and a record low of 1.080 Unit mn in Apr 2011. India Mobile Banking Transactions: Volume data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Monetary – Table IN.KAI017: Mobile Payments. [COVID-19-IMPACT]

In the third quarter of 2024, the State Bank of India recorded nearly ************ UPI transactions in India. HDFC Bank Ltd followed, with Bank of Baroda ranking third in the same period. The value of UPI-based digital payments has increased significantly due to the increased penetration of smart service applications and digital technologies. Adoption of UPI in India Unified Payment Interface (UPI) is a real-time, mobile-based payment system that enables instant transactions. UPI is at the forefront of India’s digital payments and is now being accepted by ***** countries where international merchant payments are accepted. Having grown rapidly in recent times, UPI has now accounted for the majority of India’s digital transactions, making it the preferred mode of payment for millions of users. Fintech players, such as PhonePe and Google Pay, lead the segment in terms of usage. Expanding  financial inclusion via UPI In 2022, the Reserve Bank of India (RBI) introduced the integration of credit cards with UPI to offer cardholders a smooth and digitally enhanced credit card experience. This initiative of moving credit on UPI will be significant in extending the digital payments ecosystem in India, bypassing hardware devices other than just the smartphone and QR codes to complete transactions.

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Merchant Banking Services Market Size 2024-2028

The merchant banking services market size is forecast to increase by USD 18.68 billion at a CAGR of 4.83% between 2023 and 2028.

The market is experiencing significant growth, driven by the increasing number of mergers and acquisitions (M&A) deals worldwide. This trend is particularly prominent In the Asia-Pacific region, where the growing number of unicorn startups presents ample opportunities for merchant banking services. However, this market is not without challenges. Data security concerns are at the forefront, as financial institutions and corporations increasingly rely on digital platforms for transactions and information exchange. Merchant banking services must adapt to these evolving needs by investing in cybersecurity measures and ensuring regulatory compliance. The financial services sector's digital transformation, driven by fintech and artificial intelligence (AI), further boosts market growth.
Merchant banking services are integral to financial institutions, high-net-worth individuals, investment firms, insurance companies, hedge funds, pension funds, global corporates, and charity organizations. Companies seeking to capitalize on market opportunities and navigate challenges effectively should focus on providing value-added services, such as strategic advice, risk management, and innovative financial solutions. By staying abreast of regulatory changes and market trends, merchant banking institutions can differentiate themselves and build long-term relationships with clients.

What will be the Size of the Merchant Banking Services Market during the forecast period?

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The market encompasses a range of financial intermediary services provided to businesses, including asset management, corporate advice, credit syndication, loan syndication, portfolio management, and non-resident investment advice. This market caters to various entities, from small and medium enterprises to startups and multinational corporations. Mergers, acquisitions, business restructuring, and initial public offerings (IPOs) frequently necessitate the involvement of merchant banking services. The market's size is substantial, with continuous growth driven by increasing globalization, foreign direct investment, and the expanding role of financial services in international markets. Capital markets and investment climates play a significant role in market dynamics, influencing the demand for merchant banking services.
High-net-worth individuals and investment firms also contribute to the market's growth, as they seek expert advice and tailored financial solutions. Merchant banking services extend beyond traditional banking institutions, with non-banking players increasingly participating In the market. This competition intensifies the focus on innovation, customized offerings, and value-added services to maintain a competitive edge. Overall, the market is a dynamic and evolving landscape, shaped by the needs of businesses and the ever-changing financial services industry.

How is this Merchant Banking Services Industry segmented?

The merchant banking services industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

End-user

  Business
  Individuals


Geography

  APAC

    China
    India


  Europe

    France
    UK


  North America

    US


  South America



  Middle East and Africa

By End-user Insights

The business segment is estimated to witness significant growth during the forecast period.

Merchant banking services cater to large corporate organizations, institutional investors, and small to medium-sized enterprises (SMEs). These financial institutions specialize in trade financing, fundraising, and loan services for business clients. Merchant banks significantly focus on bolstering the economic strength of businesses through various financial solutions. Notably, they exclusively serve business organizations and do not extend services to the general public. Key functions of merchant banking services include portfolio management, which entails the effective management of securities such as bonds, preferred shares, and stocks. Merchant banks offer advisory services to investors to help them make informed investment decisions.

Additionally, mergers and acquisitions, business restructuring, credit syndication, asset management, corporate advice, and loan syndication are other essential services provided by merchant banks. These services play a crucial role In the financial landscape, facilitating international markets, capital markets, investment climates, and foreign direct investment. With the advent of digital transformation technology, fintech providers have entered the market, o

India Mobile Banking Transactions: Value data was reported at 37,696,017.240 INR mn in Mar 2025. This records an increase from the previous number of 32,155,172.112 INR mn for Feb 2025. India Mobile Banking Transactions: Value data is updated monthly, averaging 1,798,543.365 INR mn from Apr 2011 (Median) to Mar 2025, with 168 observations. The data reached an all-time high of 37,696,017.240 INR mn in Mar 2025 and a record low of 760.000 INR mn in Apr 2011. India Mobile Banking Transactions: Value data remains active status in CEIC and is reported by Reserve Bank of India. The data is categorized under India Premium Database’s Monetary – Table IN.KAI017: Mobile Payments. [COVID-19-IMPACT]

Key information about India Non Performing Loans Ratio

• India Non Performing Loans Ratio stood at 2.8 % in Mar 2024, compared with the ratio of 3.9 % in the previous year
• India Non Performing Loans Ratio data is updated yearly, available from Mar 1998 to Mar 2024
• The data reached an all-time high of 14.7 % in Mar 1999 and a record low of 2.3 % in Mar 2011

• In the latest reports, Money Supply M2 in India increased 8.6 % YoY in Sep 2024
• India Foreign Exchange Reserves was measured at 589.8 USD bn in Oct 2024
• The Foreign Exchange Reserves equaled 9.2 Months of Import in May 2023
• The country's Domestic Credit reached 3,162.1 USD bn in Oct 2024, representing an increased of 10.9 % YoY
• Household Debt of India reached 617.3 USD bn in Mar 2024, accounting for 17.4 % of the country's Nominal GDP

Key information about India Total Loans

• India Total Loans was reported at 2,048.209 USD bn in Dec 2024
• This records an increase from the previous number of 2,037.410 USD bn for Sep 2024
• India Total Loans data is updated quarterly, averaging 898.708 USD bn from Dec 1998 to Dec 2024, with 105 observations
• The data reached an all-time high of 2,048.209 USD bn in Dec 2024 and a record low of 82.701 USD bn in Dec 1998
• India Total Loans data remains active status in CEIC and is reported by CEIC Data
• The data is categorized under World Trend Plus’s Global Economic Monitor – Table: Total Loans: USD: Quarterly

As of March 2025, the Bharat Interface for Money (BHIM) Unified Payments Interface (UPI) was the most used mode of digital payments in India, with a transaction volume of around *** billion transactions. National Automated Clearing House (NACH) followed with around ** billion transactions. The majority of the transactions across sectors such as online retail, food delivery, mobility, and e-health were made by UPI in the financial year 2023. What is BHIM UPI? BHIM is a mobile payment app developed by the National Payments Corporation of India (NPCI) based on UPI. It was launched in 2016, and it facilitates electronic payments directly through banks and promotes cashless payments. It allows users to send or receive payments using only a mobile number or UPI ID. As of June 2023, more than *** Indian banks had partnered with BHIM. Payment methods: a decade of transformation    The last decade has witnessed a significant transformation in the payments landscape in India. In the early decade, methods such as cash and cheques were prevalent. However, with the advent of smartphones and internet connectivity, digital payment methods started gaining traction. The government’s ‘Digital India’ campaign further propelled this shift, aiming to create a ‘digitally empowered’ economy that is 'Faceless, Paperless, Cashless’. Several digital payment methods emerged in this decade. Credit cards and debit cards became widely popular due to their convenience, portability, and security features. The introduction of UPI served as a game changer in the payments industry by facilitating instant money transfers between any two bank accounts via a mobile platform.

The value of loans in India increased 9.60 percent in June of 2025 over the same month in the previous year. This dataset provides the latest reported value for - India Bank Loan Growth - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

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India Unified Payments Interface Market Size 2025-2029

The India unified payments interface (UPI) market size is forecast to increase by USD 4317.82 billion, at a CAGR of 271.9% between 2024 and 2029.

The Unified Payments Interface (UPI) market is experiencing significant growth, driven by the instant and smooth money transfer process it offers. This real-time payment system has gained immense popularity, particularly in the context of growing mobile commerce. UPI's integration with various mobile apps has facilitated seamless shopping transactions, enhancing customer convenience. However, this market is not without challenges. UPI payment frauds pose a significant threat, with increasing reports of unauthorized transactions. As the market evolves, it is crucial for stakeholders to address these challenges effectively to maintain trust and ensure secure transactions.
Companies can capitalize on the market's momentum by focusing on robust security measures and user education. By navigating these challenges and leveraging the convenience and efficiency of UPI, businesses can effectively cater to the evolving needs of digital consumers. Open banking and payment gateways enable seamless payment routing, while data analytics and big data harness the power of AI and machine learning.

What will be the size of the India Unified Payments Interface (UPI) Market during the forecast period?

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In the dynamic UPI market, multi-factor authentication (MFA) and personalized experiences are key trends shaping the landscape. Payment processors leverage MFA to secure transactions, while digital wallets offer customized user experiences. Payment optimization and financial literacy programs are crucial for customer segmentation and inclusion initiatives. Instant payment and mobile money facilitate real-time settlement, driving the adoption of mobile Point of Sale (mPOS) systems.
Payment tokenization and biometric authentication ensure data encryption and security. Payment card networks and cloud computing further enhance the ecosystem's flexibility and scalability. Two-factor authentication (2FA) and real-time settlement are essential components of the UPI market's growth, fostering trust and efficiency. Blockchain technology and payment orchestration are emerging innovations, promising to revolutionize the industry.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Application

  Money transfers
  Bill payments
  Point of sale
  Others


Type

  P2P
  P2M


Technology

  UPI 1.0
  UPI 2.0
  UPI lite
  UPI for feature phones
  Cross-border UPI


Geography

  APAC

    India

By Application Insights

The money transfers segment is estimated to witness significant growth during the forecast period.

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The Money transfers segment was valued at USD 365.30 million in 2019 and showed a gradual increase during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in the adoption of Unified Payments Interface (UPI) in India Industry?

The instant and seamless money transfer process serves as a primary catalyst for market growth. By ensuring quick and efficient transactions, it attracts an increasing number of users and fuels the expansion of the financial sector. The Unified Payments Interface (UPI) is a digital payment system based on the Implied Money Transfer System (IMPS) platform, enabling instant money transfers between any two bank accounts in India. UPI offers uninterrupted services 24x7, allowing users to make payments at any time and from anywhere, irrespective of holidays or odd hours. This payment system's security is ensured through multiple layers of authentication, making it a reliable choice for bill payments, online shopping, and peer-to-peer transactions.



Financial innovation has been a significant driver for the growth of UPI, enabling instant fund transfers and eliminating the need for physical checks or cash transactions. Merchant onboarding is a seamless process, and UPI integrates easily with digital banking applications and payment gateways. Transaction fees are minimal, making it an economical option for businesses and individuals. Overall, UPI's fast, secure, and convenient payment processing system has revolutionized digital payments in India.

What are the market trends shaping the Unified Payments Interface (UPI) in India Industry?

The i

As of March 2024, HDFC Bank was the leading Indian private bank with total assets over ** trillion Indian rupees. Within the banking sector, HDFC Bank comes second after the public State Bank of India, which is worth nearly ** trillion Indian rupees in terms of assets during the same time period. Other leading private banks in India were ICICI Bank and Axis Bank. Banking in India The oldest banks in India have their origin in the early 19th century under colonial rule. Among them was the Bank of Calcutta founded in 1806 which later became the State Bank of India. By 1969, most banks in India had been nationalized. Private banks were licensed again only after the market liberalization of the early 1990s. From then on, the banking sector diversified rapidly, having 136 banks excluding small cooperative banks as of October 2020. They offer a wide network of ATMs and branches. HDFC – the private banks market leader Customers were largely satisfied with private banks in India. Among more than 20 private banks, HDFC Bank led the sector in terms of assets and net profit. Founded in 1994 in Mumbai, Maharashtra, it is a subsidiary of Housing Development Finance Corporation Limited (HDFC). The HDFC group offers a wide range of financial services and owns the general insurance company HDFC ERGO as well.

Key information about India Domestic Credit

• India Domestic Credit reached 3,168.1 USD bn in Dec 2024, compared with a reported figure of 3,203.2 USD bn in the previous month
• India Domestic Credit data is updated monthly
• It is available from Mar 1999 to Dec 2024 and averaged 1,471.6 USD bn
• The data reached an all-time high of 3,203.2 USD bn in Nov 2024 and a record low of 227.9 USD bn in Mar 1999

• In the latest reports, India Domestic Credit represented an increased of 11.1 % YoY in Dec 2024
• Money Supply M2 in India increased to 765.5 USD bn YoY in Nov 2024
• India Foreign Exchange Reserves was measured at 547.5 USD bn in Dec 2024
• The Foreign Exchange Reserves equaled 9.2 Months of Import in May 2023
• The country's Non Performing Loans Ratio stood at 2.8 % in Mar 2024, compared with the ratio of 3.9 % in the previous year
• Household Debt of India reached 17.4 % in Mar 2024, accounting for 17.4 % of the country's Nominal GDP

The Asia-Pacific neo-banking market is experiencing robust growth, driven by the increasing adoption of digital technologies, a burgeoning smartphone penetration rate, and a preference for convenient and accessible financial services. The region's diverse demographics and economic landscapes contribute to this expansion, with countries like China and India leading the charge due to their massive populations and rapidly developing digital economies. The market's strong Compound Annual Growth Rate (CAGR) of 8% from 2019 to 2024 suggests a continuous upward trajectory, indicating a significant market opportunity for both established and emerging neo-banks. This growth is further fueled by innovative service offerings like mobile banking, seamless payment transfers, and accessible loan products tailored to diverse customer needs, including business and personal accounts. While regulatory hurdles and cybersecurity concerns present some challenges, the overall market outlook remains positive. The dominance of mobile-first solutions is evident, with many users preferring the convenience of managing their finances through smartphone apps. Competition is fierce, with a range of players, from established fintech giants to smaller, niche neo-banks, vying for market share. The market segmentation reveals significant opportunities within various account types, service offerings, and geographic regions. Further growth is anticipated in underpenetrated markets within the Asia-Pacific region, as awareness and trust in digital banking increase. The ongoing evolution of fintech infrastructure and regulatory frameworks will play a critical role in shaping the market's future landscape. The key segments driving growth include mobile banking, which offers convenience and accessibility, and payment and transfer services, which benefit from the rising adoption of digital payment methods. Loan services offered by neo-banks also contribute significantly to market growth. The enterprise segment is experiencing strong growth as businesses increasingly adopt digital financial solutions for enhanced efficiency. While China and India are currently the largest markets, other countries in the Asia-Pacific region are showing significant potential for future growth, driven by rising internet and smartphone penetration. The competitive landscape is dynamic, with both established financial institutions and new entrants competing for market share through technological innovation, strategic partnerships, and aggressive marketing campaigns. The continued focus on user experience, security, and regulatory compliance will be crucial for long-term success in this competitive and rapidly evolving market. Recent developments include: In April 2022, WeLab Bank has become the first virtual bank in Hong Kong to be granted permission to provide digital wealth advising services. The Bank soft-launched its intelligent wealth solution GoWealth Digital Wealth Advisory (GoWealth) for selected customers after receiving Type 1 (Dealing in securities) and Type 4 (Advising on securities) licenses from the Hong Kong Securities and Futures Commission (HKSFC)., In December 2021, Kakao Bank announced the signing of an MOU with Kyobo Life Insurance, Kyobo Bookstore, and Kyobo Securities for data cooperation and partnerships with other financial platform firms. Financial product planning and development, as well as cooperative marketing, will arise from a business relationship with Kyobo Life Insurance and Kyobo Securities.. Notable trends are: Number of Customers for Neo Banking is Raising Significantly in the Region.

Key information about India Gross Savings Rate

• India Gross Savings Rate was measured at 30.7% in Mar 2024, compared with 30.7% in the previous year.
• India Gross Savings Rate is updated yearly, with data available from Mar 1951 to Mar 2024, and an average rate of 30.7%.
• The data reached an all-time high of 30.7% in Mar 2008 and a record low of 7.9% in Mar 1954.
• CEIC calculates Gross Domestic Savings Rate from annual Gross Domestic Savings and annual Nominal GDP. Ministry of Statistics and Programme Implementation provides Gross Domestic Savings in local currency and Nominal GDP in local currency based on SNA 2008, at 2011-2012 prices. Gross Domestic Savings Rate is annual frequency, ending in March of each year.
• In the latest reports, India GDP expanded 6.1% YoY in Mar 2023.
• India Nominal GDP reached 873,666.0 USD mn in Mar 2023. Its GDP deflator (implicit price deflator) increased 4.1% in Mar 2023.
• India GDP Per Capita reached 2,452.2 USD in Mar 2023.

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Digital Banking Platforms Market Size 2025-2029

The digital banking platforms market size is forecast to increase by USD 27.8 billion, at a CAGR of 16.4% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing adoption of digital payment solutions. Open banking APIs, investment platforms, and network security facilitate collaboration and innovation. The shift towards contactless transactions and online banking services is accelerating, as consumers seek convenience and flexibility in managing their finances. Additionally, the rise of blockchain as a service in the banking, financial services, and insurance (BSFI) sector is revolutionizing the industry, offering secure, decentralized solutions for transactions and record-keeping.
Effective implementation of robust security measures and transparent communication with customers regarding data usage will be crucial for market players looking to capitalize on the opportunities presented by this dynamic market. Companies must remain agile and innovative, addressing these challenges while staying abreast of the latest trends and technologies to maintain a competitive edge. Biometric authentication and incident response systems further bolster online banking security.

What will be the Size of the Digital Banking Platforms Market during the forecast period?

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The digital banking landscape continues to evolve, with innovative technologies and applications shaping the industry's dynamics. Multi-factor authentication (MFA) and fraud detection systems ensure secure international payments, while API security and data analytics strengthen application security. Wealth management tools and algorithmic trading platforms cater to diverse financial needs, with risk management tools providing essential safeguards. Integration of cryptocurrency, checking accounts, and mobile banking apps broadens accessibility, enhancing financial inclusion. Contactless payments, QR code payments, and mobile wallets offer seamless transaction processing. Digital identity verification and KYC compliance ensure regulatory adherence, while account aggregation and AML compliance maintain transparency.

Blockchain technology, data encryption, and customer support prioritize data privacy and security. Real-time payments, cross-border transactions, and accessibility features cater to diverse customer needs. Vulnerability management and regulatory compliance remain crucial aspects of this dynamic market. However, this market is not without challenges. Issues related to data privacy and security continue to pose significant obstacles, as financial institutions navigate the complexities of protecting sensitive customer information in a digital age.

How is this Digital Banking Platforms Industry segmented?

The digital banking platforms industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Retail banking
  Corporate banking


Component

  Platforms
  Services


Service Type

  Online banking
  Mobile banking


Geography

  North America

    US
    Canada
    Mexico


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    India
    Japan


  Rest of World (ROW)

By Type Insights

The Retail banking segment is estimated to witness significant growth during the forecast period. In the retail banking landscape, digital platforms have become a priority for both customers and financial institutions. The shift towards digital banking is driven by the convenience and time-saving benefits it offers. Spending on application development, maintenance, system integration, IT consulting, software deployment, and hardware deployment in the retail sector for digital banking platforms continues to grow. Multi-factor authentication (MFA), fraud detection systems, API security, data analytics, and digital identity verification are integral components of these platforms, ensuring robust security for customers. Wealth management tools, algorithmic trading platforms, and investment platforms offer personalized financial services.

Risk management, application security, and network security safeguard transactions and customer data. Real-time payments, bill payment systems, and mobile wallets streamline financial transactions, while QR code payments and contactless payments enhance the user experience. Credit and debit cards, savings accounts, and checking accounts are now accessible through digital channels. Regulatory compliance, including KYC and AML, is maintained through digital means, ensuring a secure and transparent banking envir