UPI is booming. So why is cash in India still growing at 12.5%?
India has rarely been more digital in the way it pays. UPI is used for everything from a cup of tea to rentals, bank transfers can happen in seconds and QR codes are now a fixture at shops and street stalls across the country.
Yet the amount of physical currency Indians hold is still rising at a surprisingly brisk pace.
Currency in circulation grew 12.5% year-on-year as of July 31, 2026, according to the Reserve Bank of India’s latest Bulletin. That was slightly faster than the 12.4% growth recorded at the end of June. Reserve money, adjusted for changes in the cash reserve ratio, expanded 12.6%, while broader money supply grew 14.7%.
