Cash in Circulation in India Reaches ₹41.8 Lakh Crore

Cash in public hands in India reached ₹41.8 lakh crore as of July 31, 2026, marking a 13 percent year-on-year increase according to recent data.

While UPI transaction growth remains higher at 18.7 percent, the margin between digital payments and cash usage is narrowing as the government considers reintroducing merchant discount rates.

The potential reintroduction of MDR charges on high-value UPI transactions has raised concerns that costs may be passed to customers, potentially shifting public habits back toward cash.