Cash is no longer the King? How UPI is replacing cash in semi-urban and rural India
UPI has spread its pangs in semi-urban as well as rural India slowly and steadily displacing traditional cash transactions. There is no better validation of this change than the remarkable surge in UPI transactions from a mere 1.8 crore in FY 2016-17 to a staggering 8,375 crore in FY 2022-23.
“In the heartlands of semi-urban and rural India, a digital revolution quietly unfolds as UPI, the Unified Payments Interface, emerges as a powerful force, gradually but decisively displacing traditional cash transactions. In these communities where cash was once king, UPI is swiftly becoming the preferred monarch," said Shikhar Aggarwal Chairman, BLS E-Services.
Exciting news! Mint is now on WhatsApp Channels. Subscribe today by clicking the link and stay updated with the latest financial insights! Click here Experts say that UPI's user-friendly, mobile-based platform has transcended language barriers and complex banking procedures, making it accessible to a wide range of individuals, many of whom are entering the formal financial system for the first time.
In the words of Shikhar Aggarwal, 'It's a transformation driven by technology but fuelled by the aspirations of millions, bridging the digital divide and offering a path to prosperity that was previously unimaginable." UPI is not just replacing cash; it's ushering in a brighter, more inclusive future where financial independence is within reach for all, thanks to the fusion of technology and vision, added Shikhar Aggarwal. UPI has triggered a financial revolution across India, and this change is even more evident and significant in tier 2 and 3 regions where cash was essentially the only plausible medium of transaction.
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