Cash in circulation hits ₹40 lakh crore: What's the catch
India just set a new record: cash in circulation hit ₹40 lakh crore by January 2026, growing much faster than before.
More people are using cash thanks to higher spending, lower interest rates, and the phaseout of ₹2,000 notes.
Digital payments are booming too
While cash demand is up, digital payments like UPI are also booming.
The share of cash compared to GDP actually fell from 14.4% to 11%, showing that more of India's growth is now powered by digital money—even though cash still matters a lot.
Banks are seeing huge growth
Banks have seen huge growth alongside this trend.
Bank deposits have grown substantially over the past decade, and loans have increased significantly as well.
Bank assets now make up almost all of India's GDP—a sign that the financial sector is deepening as both cash and digital payments keep rising together.