Abstract

This paper explores the transformation of digital payment systems in India, tracing their evolution from early electronic fund transfers to the adoption of cutting-edge platforms like Unified Payments Interface (UPI), mobile wallets, and the digital rupee. The study highlights the critical role played by government initiatives such as Digital India and the JAM trinity, as well as the regulatory and infrastructural support provided by institutions like the Reserve Bank of India and the National Payments Corporation of India. By relying on secondary data and existing literature, the paper provides a conceptual overview of technological progress, key stakeholders, emerging trends, and persistent challenges in the Indian digital payment ecosystem. The review concludes that while India has made substantial progress in promoting digital payments, sustained efforts are needed to address issues of security, inclusion, and digital literacy to ensure long-term financial sustainability and accessibility.