Overview
- Currency in circulation reached about ₹40 lakh crore at end‑January 2026, with currency with the public near ₹39 lakh crore and year‑on‑year growth of 11.1%.
- UPI transaction value hit a monthly record of roughly ₹28.3 lakh crore in January 2026, equal to about 70% of the cash stock.
- Cash’s share of the economy has fallen, with the cash‑to‑GDP ratio near 11% in FY26 versus 14.4% in FY21, and ATM withdrawals’ share of GDP also easing.
- SBI links policy signals to cash use, noting around 18,000 GST notices in July 2025 in Karnataka coincided with statistically significant ATM‑withdrawal increases there, with effects also seen in West Bengal and Kerala.
- The currency mix has shifted since the ₹2,000 note withdrawal, with ₹500 notes now about 86% of value and RBI directing wider availability of ₹100/₹200 notes in ATMs by March 2026.