UPI Payments: India has now been recognized as Digital India. People now prefer to make digital payments more and more. However, in the meanwhile the importance of cash has not diminished. Because according to some reports, Indian people are not only using digital payments but they also like to keep cash in their pockets. But why so? Let us understand.

Record level of digital payments
The level of digital payments is crossing records in India. UPI transactions have crossed the 200 billion mark. From small shopkeepers to big businesses, online payment is prevalent everywhere. Meanwhile, some new figures have come out in which it is being said that despite UPI payments, people are still preferring to keep cash in their pockets. According to RBI data, retail digital payments have increased by 26.9 percent and UPI transaction volume has increased by about 30 percent.

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People like to keep cash in their pockets
In fact, according to the latest report of RBI, the circulation of cash in the market increased by 11.4% in the financial year 2026. Last year this increase was only 5.8 percent. It is clear from this that despite the increase in digital payments, the need for cash has not ended.

Regarding this, some experts believe that now people are using both cash and digital payment but for different needs. Cash is still used for small daily expenses and money received from government schemes. In many states, government assistance schemes, crop loss compensation and direct benefit transfer schemes have also increased the demand for cash. Apart from this, tax relief and increased consumer spending after GST also increased cash flow in the market.

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cash for gold purchase
The prices of gold and silver are increasing day by day, yet people are continuously buying them. People are looking at gold and silver as investment. According to RBI, gold was imported in small quantities, but due to expensive prices its total value increased. The demand for cash has increased due to the use of cash in big purchases.

Let us tell you that India is not becoming completely cashless. Digital payments are increasing rapidly in cities, but cash is still used more in villages and small markets. People are using both digital payment for convenience and cash for security.