The government’s top aim, according to Union Finance Minister Nirmala Sitharaman, is to “make sure” that the money in circulation is in “lower denominations” and to raise awareness about “doing digital transfers.”
“We are making every effort to ensure that currency will be in the lower denominations, used much more than the higher, as the Rs 2000 is almost completely out of circulation, except possibly 0.02, which is still lying outside,” Sitharaman said in response to a question about the future of the Rs 500 note. The bank has received it from others.
“We need to have more digital awareness built so that people see a benefit in doing digital transfers,” the Union Finance Minister said at the ‘National Commemorative Seminar on 60 Years of Pt Deendayal Upadhyaya Integral Humanism Lectures’ in the national capital.
India has witnessed an unprecedented surge in digital transactions in recent years, marking a significant milestone in the country’s transition to a cashless society.
With a record 16.73 billion transactions in December 2024, UPI is at the forefront of India’s digital payment revolution.
Furthermore, FASTag and Immediate Payment Service (IMPS) have become essential players, facilitating quicker, easier, and safer financial transactions.
According to new data from the National Payments Corporation of India (NPCI), UPI has processed over 16.73 billion transactions, totaling an incredible Rs 23.25 lakh crore. This sets a new record. Compared to Rs 21.55 lakh crore in November, this is a significant increase.
In 2024, UPI performed around 172 billion transactions, a 46% increase from 117.64 billion in 2023. With UPI as a key tenet, this increase highlights a larger cultural trend toward financial inclusion.
