The Daily Brief How UPI is Changing Cash Use in India
Oct 7, 2025
Explore how India's adoption of UPI is curbing cash use, with insights into declining ATM withdrawals and varying state uptake. Discover the nuances of global trade disruptions, from longer shipping routes to the impact of tariffs and geopolitical tensions. Learn about India's improved port connectivity and the shift towards sustainable shipping practices. Finally, delve into the complexities of consumer finance, including the booming IPO market and rising loan defaults, shaping the economic landscape.
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UPI Is Replacing Cash At Scale
- UPI adoption has meaningfully reduced cash demand nationwide by substituting for physical currency.
- Indicators like slower cash growth, falling ATM withdrawals, and lower cash-to-deposit ratios confirm this structural shift.
Micropayments Went Digital
- Average UPI ticket sizes have shrunk dramatically, showing micropayments moved digital.
- The drop from 3,867 to 1,404 rupees shows deeper everyday penetration of UPI.
State Gaps Are Narrowing
- UPI's adoption varies widely across states, with 10 states generating ~80% of volume.
- The gap between high and low adopters is narrowing as laggard states catch up post-pandemic.