India’s love for cash endures. Currency in circulation hit a record ₹40 lakh crore by January 2026’s end, boasting 11.1 percent yearly growth versus 5.3 percent last year, according to Monday’s SBI Research report.
Of this, 97.6 percent—or ₹39 lakh crore—is with the public. Parallelly, UPI’s monthly value touched ₹28 lakh crore, matching 70 percent of currency stock and driving the cash-to-GDP ratio down to 11 percent in FY26 from 14.4 percent in FY21.
The report emphasizes that while currency rises with GDP, UPI is the real growth engine: “Digital payments are propelling economic expansion beyond cash dependencies.”
Reserve money growth slowed to 5.8 percent after a CRR cut depleted RBI bankers’ deposits by ₹1.86 lakh crore this year.
Banking metrics shine over FY15-FY25: deposits ballooned from ₹85.3 lakh crore to ₹241.5 lakh crore; loans from ₹67.4 lakh crore to ₹191.2 lakh crore. Bank assets climbed to 94 percent of GDP from 77 percent, indicating stronger intermediation and stability.
This data reveals India’s hybrid payment ecosystem, where UPI’s rise complements rather than replaces cash, fostering inclusive growth amid rapid digitization.