Economic reports from Mumbai reveal a booming cash economy in India, with circulation reaching ₹40 lakh crore by late January 2026—a robust 11.1 percent annual increase from last year’s 5.3 percent. SBI Research detailed this in their latest Monday release.
Public holdings account for 97.6 percent (₹39 lakh crore). Remarkably, UPI’s monthly ₹28 lakh crore volume equals 70 percent of currency stock, slashing cash-to-GDP to 11 percent in FY26 versus 14.4 percent in FY21.
“Currency growth mirrors GDP, but UPI transactions are the primary drivers of expansion,” states the analysis.
A CRR slash resulted in ₹1.86 lakh crore less in RBI deposits from banks, curbing reserve money rise to 5.8 percent.
From FY15 to FY25, the sector tripled deposits to ₹241.5 lakh crore (from ₹85.3 lakh crore) and loans to ₹191.2 lakh crore (from ₹67.4 lakh crore). Assets hit 94 percent of GDP, up from 77 percent, underscoring enhanced financial resilience.
India’s payment landscape thrives on this synergy: UPI for convenience, cash for trust, powering a dynamic economy forward.