Mumbai: Even when the country moves towards a digital future with the Integrated Payment Interface (UPI), it looks at 60 million transactions in a day, a curious contradiction: cash is rich.In the month of May, UPI transactions hit the AA record of Rs 1868 crore in April for Rs 1789 crore (Rs 23.9 lakh crore) to Rs 25.1 lakh crore.However, at the end of March, the currency in circulation was a record of Rs 36.86 lakh crore. The 500 rupee note has become a major form of cash, especially the cash, making 86 percent of the total value shocking 41 percent of the banknotes. In contrast, the state’s push to the state for the more grainy, digitized cash economy in both small sects such as 20 rupees, 50 rupees, 100 rupees and 200 rupees simultaneously, at least, number (35.6 percent) and value (10.9 percent).Finance Minister Nirmala Sitarman recently reiterated the government’s commitment to small sects and digital payments, keeping in mind the efforts to ensure that “the currency would be in the lower sects, was used much more than high.” In April, the Reserve Bank of India said that by September 30, 2025, at least 75 percent of ATMs should be able to spread 100 or 200 rupee notes, with this figure to 90 percent by March 2026. The goal is to reduce dependence on high-value notes and improve everyday transactions.Nevertheless, the revival of cash is not inspired by the needs of transactions. Bankers say the incident is better explained by a practical heritage of Kovid epidemic, precautionary hoarding. An RBI study supports this approach, drawing links between cash use and perceived economic insecurity. The study, by conspiracy, uses the satellite images of nightlight as a proxy for economic activity. It finds a connection between high GDP and bright areas of tax collection and low currency use. As formal economic activity increases, cash falls into circulation. In cash recently spikes, RBI suggests, indicate a dull preference for liquidity in indefinite times.This is not unprecedented. The RBI study stated that from 2005 to 2014, the Rapid Rollout of ATMs coincided with a decline in domestic cash holdings, as easy access reduced the alleged requirement to store money in physical currency. But the epidemic has reversed some of that progress. For now, even in a nation where 10 rupees can be paid by QR code, to loom in a particularly largely large sects.The RBI has successfully withdraws most of the banknotes of Rs 2000 without any disruption. The recent comments of the Finance Minister and RBI have assured many people that 500 rupees can be in offings to reduce banknotes.
