Overview
- Reserve Bank of India data show currency in circulation has grown to about Rs 42.86 lakh crore, an annual rise of roughly 12.5 percent, even as digital activity climbs.
- UPI volumes and value are still expanding strongly, with reports of double‑digit year‑on‑year growth in transaction counts and total value.
- RBI deputy governor Shirish Chandra Murmu says cash remains important for lower‑income households, the elderly and small traders who lack reliable internet or prefer notes for small or informal deals.
- Policy architects have proposed reintroducing a modest Merchant Discount Rate on specified higher‑value UPI merchant transactions, a 0.4 percent charge reported in recent coverage, which could change merchant incentives.
- Experts and opinion pieces argue India must preserve printing, distribution and ATM networks while funding UPI’s costly tech and security upgrades so the country keeps both resilient cash options and a sustainable digital backbone.