Why cash continues to thrive even as India's digital payments grow

The Reserve Bank of India (RBI) - the country's central bank - now has 176 billion banknotes in circulation. And yet, as Unified Payments Interface (UPI) digital transactions surge towards a billion a day, cash sloshing around the economy keeps climbing at a brisk pace. "Currency in circulation continues to grow at double-digit rates even as cash's share of individual transactions declines, thanks to growing digital payment adoption. It is the total value of physical banknotes and coins held by the public and businesses, whether spent or simply held. In India, cash reaches them through four main channels: the RBI's 19 regional offices; bank branches; more than 250,000 ATMs and cash dispensers; and millions of "business correspondents", local agents who provide basic banking services in rural areas and smaller towns.

Source: BBC Asia IN September 14, 2026 23:15 UTC