Industry Odisha Bureau, Aug 19: Since India’s very own digital payment system called the Unified Payments Interface (UPI), that has reportedly been launched in 2016 by the National Payments Corporation of India (NPCI) under the guidance of the Reserve Bank of India (RBI), and also being claimed to be now world’s largest payment platform, the UPI has grown exponentially in India with its transaction value now equivalent to 70% of currency circulation in the country, while ATM withdrawals have fallen steadily.
As per media reports, “UPI transactions in India processed 24,162 crore transactions worth approximately Rs 314 lakh crore as of June 2026, representing a significant growth in transaction value, reflecting the increasing adoption and usage of UPI as a digital payment method in the country, becoming a crucial part of India’s digital economy, and also handling a substantial portion of retail payments as well as contributing to financial inclusion.”
Media reports, citing the RBI’s 2025 study titled “Impact of UPI on Cash Demand-Evidence from National and Sub-National Levels”, have stated that, “The greater UPI adoption is associated with lower demand for cash, both nationally and at the sub-national level. The growth of Currency In Circulation (CIC) has slowed to 4-6% in recent years, driven by a structural shift towards digital payments”.
The RBI’s 2025 study has also reportedly found out that, “The ATM cash withdrawals as a share of the GDP have also fallen steadily over the years.”
Media reports, citing the RBI’s data, have also stated that, “The UPI transaction value was equivalent to 27% of the currency outstanding in early 2022, while that figure has risen to 70% by July 2026”.
