Digital transactions in India highest in world but why is cash still king?

India’s Unified Payments Interface (UPI)-led retail digital payments grew at a compounded annual growth rate (CAGR) of 50 per cent in the last five years, with digital transactions surpassing all major developed economies, including the US, the UK, and Europe, said the Reserve Bank of India in its annual 2022-2023 report.

“In India, while the UPI-led retail digital payments grew at a compounded annual growth rate (CAGR) of 50 per cent and 27 per cent in terms of volume and value, respectively (during 2016-17 to 2021-22), the currency in circulation (CIC) to GDP ratio also rose and peaked at 14.4 per cent in 2020- 21,” RBI wrote.