Are people in India going back to cash due to fear of tax? By January 2026, Currency in Circulation has crossed the record level of ₹ 40 lakh crore, of which about ₹ 39 lakh crore i.e. 97.6% of the amount is directly with the public. This represents a sharp increase of 11.1% compared to last year. According to a report by SBI, after GST notices and increased monitoring of UPI transactions in some states, small traders are giving preference to cash. On the other hand, bank deposit growth is sluggish and low savings interest rates are also having an impact. However, Cash-to-GDP is at 11% and UPI transactions remain strong.