Close Menu
The Politics
    What's Hot

    When will you feel the effects of Trump’s megabill?

    July 3, 2025

    This week on “Sunday Morning” (July 6)

    July 3, 2025

    Cruise Ship Passenger Is Missing After Going for a Hike in Alaska

    July 3, 2025
    Facebook X (Twitter) Instagram
    • Demos
    • Politics
    • Buy Now
    Facebook X (Twitter) Instagram
    The Politics
    Subscribe
    Thursday, July 3
    • Home
    • Breaking
    • World War
    • World
      • Africa
      • Americas
      • Asia Pacific
      • Europe
    • Sports
    • Politics
    • Business
    • Entertainment
    • Health
    • Tech
    • Weather
    The Politics
    Home»World»UPI transactions hit new high in May but cash still thriving
    World

    UPI transactions hit new high in May but cash still thriving

    Justin M. LarsonBy Justin M. LarsonJune 1, 2025No Comments3 Mins Read
    Share Facebook Twitter Pinterest Copy Link LinkedIn Tumblr Email VKontakte Telegram
    Share
    Facebook Twitter Pinterest Email Copy Link


    UPI transactions hit new high in May but cash still thriving
    UPI transactions hit new high in May but cash still thriving

    MUMBAI: Even as the country hurtles toward a digital future with the Unified Payments Interface (UPI) clocking 60 crore transactions a day, a curious contradiction persists: cash is thriving.In the month of May, UPI transactions hit a a record 1868 crore transactions for Rs 25.1 lakh crore, up from 1789 crore (Rs 23.9 lakh crore) in April.However, at the end of March, currency in circulation was a record Rs 36.86 lakh crore. The Rs 500 note, in particular, has become the dominant form of cash, making up 41 per cent of all banknotes by volume and accounting for a staggering 86 per cent of total value. In contrast, smaller denominations such as Rs 20, Rs 50, Rs 100 and Rs 200 together account for less than that, both in number (35.6 per cent) and value (10.9 per cent) -despite the state’s push for a more granular, digitised cash economy.Finance minister Nirmala Sitharaman recently reiterated the government’s commitment to smaller denominations and digital payments, noting efforts to ensure that “currency will be in the lower denominations, used much more than the higher.” In April, the Reserve Bank of India mandated that by Sept 30, 2025, at least 75 per cent of ATMs must be capable of dispensing Rs 100 or Rs 200 notes, with this figure rising to 90 per cent by March 2026. The goal is to reduce dependence on high-value notes and improve everyday transactional ease.Yet the resurgence of cash is not driven by transaction needs. Bankers say the phenomenon is better explained by precautionary hoarding, a behavioural legacy of the Covid pandemic. An RBI study supports this view, drawing links between cash usage and perceived economic insecurity. The study, intriguingly, uses satellite images of nighttime illumination as a proxy for economic activity. It finds a correlation between brighter regions-indicative of higher GDP and tax collection-and lower currency use. As formal economic activity rises, cash in circulation tends to fall. The recent spike in cash, the RBI suggests, reflects a lingering preference for liquidity in uncertain times.This is not unprecedented. From 2005 to 2014, the rapid rollout of ATMs corresponded with a drop in household cash holdings, as easier access reduced the perceived need to store wealth in physical currency, the RBI study said. But the pandemic has reversed some of that progress. For now, even in a nation where Rs 10 can be paid by QR code, cash-especially in large denominations-continues to loom large.The RBI has successfully withdrawn most of the Rs 2000 banknotes from circulation without any disruption. The recent comments by the finance minister and the RBI have led many to believe that measures to reduce Rs 500 banknotes may be in the offing.





    Source link

    Related

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email Telegram Copy Link
    Justin M. Larson
    • Website

    Related Posts

    World

    Wong meets Quad powers in Washington; Musk’s X wins fight against eSafety Commissioner; Trump’s ‘One Big Beautiful Bill’ passed in US Senate

    July 1, 2025
    World

    ‘Fully Aussie’ Joint opens up on Wimbledon debut

    July 1, 2025
    World

    Wall Street mixed, Tesla drops as Musk reignites Trump feud; ASX set to rise

    July 1, 2025
    World

    Rejection by Tony Tulathimutte may be the literary equivalent of doomscrolling

    July 1, 2025
    World

    With cyber-attacks on the rise, how safe is your super?

    July 1, 2025
    World

    Steve’s marriage fell apart. Then he discovered a $25,000 debt

    July 1, 2025
    Add A Comment
    Leave A Reply Cancel Reply

    • Africa
    • Americas
    • Asia Pacific
    • Breaking
    • Business
    • Economy
    • Entertainment
    • Europe
    • Health
    • Politics
    • Politics
    • Sports
    • Tech
    • Top Featured
    • Trending Posts
    • Weather
    • World
    • World War
    Economy News

    When will you feel the effects of Trump’s megabill?

    Justin M. LarsonJuly 3, 20250

    President Donald Trump and congressional Republicans’ massive tax and spending bill will affect millions of…

    This week on “Sunday Morning” (July 6)

    July 3, 2025

    Cruise Ship Passenger Is Missing After Going for a Hike in Alaska

    July 3, 2025
    Top Trending

    When will you feel the effects of Trump’s megabill?

    Justin M. LarsonJuly 3, 20250

    President Donald Trump and congressional Republicans’ massive tax and spending bill will…

    This week on “Sunday Morning” (July 6)

    Justin M. LarsonJuly 3, 20250

    The Emmy Award-winning “CBS News Sunday Morning” is broadcast on CBS Sundays…

    Cruise Ship Passenger Is Missing After Going for a Hike in Alaska

    Justin M. LarsonJuly 3, 20250

    The woman, a doctor from Kentucky, was last spotted on security footage…

    Subscribe to News

    Get the latest sports news from NewsSite about world, sports and politics.

    Advertisement
    Demo
    Editors Picks

    Review: Record Shares of Voters Turned Out for 2020 election

    January 11, 2021

    EU: ‘Addiction’ to Social Media Causing Conspiracy Theories

    January 11, 2021

    World’s Most Advanced Oil Rig Commissioned at ONGC Well

    January 11, 2021

    Melbourne: All Refugees Held in Hotel Detention to be Released

    January 11, 2021
    Latest Posts

    Review: Russia’s Putin Sets Out Conditions for Peace Talks with Ukraine

    January 20, 2021

    Review: Implications of San Francisco Govts’ Green-Light Nation’s First City-Run Public Bank

    January 20, 2021

    Queen Elizabeth the Last! Monarchy Faces Fresh Demand to be Axed

    January 20, 2021
    Advertisement
    Demo
    Editors Picks

    When will you feel the effects of Trump’s megabill?

    July 3, 2025

    This week on “Sunday Morning” (July 6)

    July 3, 2025

    Cruise Ship Passenger Is Missing After Going for a Hike in Alaska

    July 3, 2025

    Supreme Court Lets Trump Deport Eight Migrants to South Sudan

    July 3, 2025
    Latest Posts

    Review: Russia’s Putin Sets Out Conditions for Peace Talks with Ukraine

    January 20, 2021

    Review: Implications of San Francisco Govts’ Green-Light Nation’s First City-Run Public Bank

    January 20, 2021

    Queen Elizabeth the Last! Monarchy Faces Fresh Demand to be Axed

    January 20, 2021
    Advertisement
    Demo
    Facebook X (Twitter) Pinterest Vimeo WhatsApp TikTok Instagram

    News

    • World
    • US Politics
    • EU Politics
    • Business
    • Opinions
    • Connections
    • Science

    Company

    • Information
    • Advertising
    • Classified Ads
    • Contact Info
    • Do Not Sell Data
    • GDPR Policy
    • Media Kits

    Services

    • Subscriptions
    • Customer Support
    • Bulk Packages
    • Newsletters
    • Sponsored News
    • Work With Us

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    © 2025 The Politics Designed by The Politics.
    • Privacy Policy
    • Terms
    • Accessibility

    Type above and press Enter to search. Press Esc to cancel.