The National Payments Corporation of India (NPCI), the organization behind UPI, posted a strong financial surplus for the fiscal year ending FY25. Its revenue surplus, which is similar to net profit in private companies, rose by 41.7% to Rs 1,552 crore. In the previous fiscal year, NPCI recorded a surplus of Rs 1,095 crore.
NPCI is a not-for-profit body, so it doesn’t show profit in the usual corporate sense. However, this sharp increase in surplus reflects its financial strength as digital payment usage continues to rise rapidly in India.
Revenue Sees Big Jump
NPCI’s revenue grew 19% year-on-year, reaching Rs 3,270 crore compared to Rs 2,749 crore in FY24. This boost came from increased digital payment activity across its platforms like UPI, IMPS, AePS, BBPS, and NCMC. These systems earn revenue through small fees from banks and fintechs based on the transaction value.
In FY25 alone, NPCI processed 21,360 crore transactions, up 33% from 16,100 crore transactions in FY24. Its financial position remains strong, with a net worth of Rs 6,412 crore and a Settlement Guarantee Fund (SGF) of Rs 17,892 crore. A part of this fund, Rs 2,695 crore, supports the Bharat Bill Payment System (BBPS).
UPI Faces Service Issues
While UPI has been a huge success, it faced some challenges this year. In April, a major outage affected services like Google Pay and PhonePe. The issue came from some banks overusing the ‘Check Transaction’ API, which caused an overload.
Despite such issues, UPI continues to grow. In May 2025 alone, UPI handled 18.6 billion transactions worth Rs 25.14 lakh crore. The Finance Ministry recently confirmed that UPI transactions would remain free for merchants, ending rumors about bringing back merchant fees.
Government Offers Support
To help maintain this massive digital infrastructure, the Indian government approved a Rs 1,500 crore incentive to support banks and fintechs handling small-ticket UPI payments. However, many companies believe that this amount is not enough, given India’s massive payment network and user base.
Founded in 2008 by the RBI and Indian Banks’ Association, NPCI has played a vital role in India’s digital payments revolution. UPI, launched in 2016, grew rapidly after demonetization and smartphone adoption. As of May 2025, NPCI has 65 shareholders, including public and private banks.
