Volume VI Special Issue IV April 2026

Name of Author : Jitty Elsa George

Title of the paper : Digital Payment Expansion and Monetary Trends in India

Abstract: The rapid expansion of FinTech, particularly digital payment platforms such as the Unified Payments Interface UPI, has significantly transformed Indias payment ecosystem over the past decade. Along with the digital transactions, key monetary indicators such as currency in circulation CiC have also exhibited sustained expansion. The recent evidence indicates that CiC has continued to rise, reaching nearly ₹40 lakh crore in 2026 raising important questions regarding the evolving interaction between financial innovation and monetary trends. Against this backdrop of an apparent paradox, the present study examines the evolving relationship between digital payment growth and cash dynamics in India using secondary time series data from the RBI and the NPCI for the period 2016 to 2024. Key variables include UPI transaction value, total retail digital payments, currency in circulation etc. The methodology combines descriptive trend analysis, growth rate comparisons, correlation analysis, and a simple regression framework estimated using SPSS. A potential structural shift caused by COVID-19 scenario is also discussed. Preliminary expectations suggest that while digital payments may reduce the relative reliance on cash as a share of GDP, absolute currency demand may continue to grow as a result of economic expansion, precautionary holdings, and dynamics of informal sector. An empirical examination of this coexistence contributes to the broader discourse on Indias transition toward a less cash economy.

Keywords : digital payment expansion, UPI, CIC, Indian Economy, regression analysis, SPSS

DOI :

Page Number : 111-122