New Delhi
India is witnessing a unique financial pattern where both cash usage and digital payments are growing simultaneously, a trend highlighted by State Bank of India (SBI) as a “cash paradox.” SBI Research notes that while digital platforms like UPI are expanding rapidly for everyday transactions, cash circulation remains elevated due to informal payments, rural dependence, and precautionary holdings. Rather than replacing cash, digital payments are growing alongside it, creating a hybrid payment ecosystem. The report emphasizes that India’s economy continues to balance traditional and modern payment systems. It also suggests strengthening digital infrastructure and financial inclusion to support future growth, including wider adoption of emerging technologies like CBDC across sectors.
