UPI is now almost equal to India’s GDP:But is cash still the king in the era of digital surge?

The value of total financial transactions using the Unified Payments Interface (UPI) is now almost equal to size of India’s Gross Domestic Product (GDP). According to the latest data of the nodal agency, which regulates UPI transactions in the country, the National Payments Corporation of India (NPCI), UPI clocked 24,162 crore transactions worth ₹314 lakh crore in FY26. While, according to the government of India’s organisation, National Statistics Office (NSO), the country’s GDP is pegged at ₹322.58 lakh crore in the financial year 2025-26 (FY26.) UPI accounts for 97% of India’s GDP So, the total value of UPI transactions made in fiscal year 2026 is equal to 97% of India’s GDP. This underscored the continued scale and adoption of India’s flagship digital payments platform. The government noted that UPI has emerged as a key pillar of India’s digital economy, enabling seamless real-time payments and fostering financial inclusion by bringing individuals, small businesses, and micro-entrepreneurs into the formal financial system.
The strong performance in FY26 builds on sustained momentum over the past few years, supported by increasing merchant acceptance, smartphone penetration, and policy initiatives aimed at promoting cashless transactions. FY27 has started strong for India’s digital payments ecosystem, with UPI continuing to operate at a large scale. In April 2026, UPI processed 22.35 billion transactions worth Rs 29.03 lakh crore. It is becoming clear that digital payments are no longer just about growth; they are becoming a natural part of everyday life. In rural and semi-urban areas, consumers and small businesses are not just trying digital payments, but are actively relying on them for daily transactions. -Anand Kumar Bajaj, Founder, MD and CEO, PayNearby The government reiterated its commitment to strengthening the digital payments ecosystem, with a focus on innovation, security, and inclusion, as UPI continues to scale new milestones. How much cash do people use? According to the RBI data , during the same financial year, the value of total currency in circulation, which includes both banknotes and coins, stood at ₹4.43 lakh crore which accounts for just over 1% of the GDP. Albeit, the cumulative value of total transactions in cash and coins as of early 2026 is over ₹40 lakh crore, which accounts for over 12% of the country’s GDP. ​