A new SBI Research report has underlined that both cash and digital payments remain indispensable for India, complementing each other despite marginal substitutability. While households increasingly rely on UPI for small retail transactions, cash continues to be kept for emergencies and informal exchanges. The report noted that India’s Central Bank Digital Currency (CBDC), the e-Rupee, has seen limited circulation of ₹1,016 crore as of March 2025, and called for greater awareness, usability, and fintech partnerships to boost adoption.
The study highlighted that per capita GDP rose from ₹71,609 in FY12 to ₹2,51,393 in FY26, while per capita currency in circulation (CiC) grew from ₹8,762 to ₹29,324 in the same period. The gap between CiC and ATM withdrawals widened fivefold between FY24 and FY26, reflecting precautionary motives amid global uncertainty. Denomination trends remain skewed, with ₹500 notes accounting for 86% of value share, prompting RBI to direct banks and ATM operators to ensure availability of ₹100 and ₹200 notes. SBI concluded that strengthening CBDC usage alongside cash and UPI is crucial for India’s evolving payment ecosystem.