India's Digital Payment Surge: Currency and Convenience

Union Finance Minister Nirmala Sitharaman announced on Saturday that the government's priority is to ensure currency circulation favors lower denominations while enhancing public awareness about digital transactions. Addressing concerns about the Rs 500 note, she reassured that efforts are underway to prioritize lower denominations as the Rs 2000 note is mostly withdrawn from circulation.

Speaking at the 'National Commemorative Seminar on 60 Years of Pt Deendayal Upadhyaya Integral Humanism Lectures' in the capital, Sitharaman stressed the need for greater digital literacy to underscore the benefits of cashless transactions. In recent years, India has seen a remarkable uptick in digital payments, marking a transformative step towards a cashless economy.

Leading the charge in digital payments is the Unified Payments Interface (UPI), which achieved an impressive 16.73 billion transactions in December 2024. Supported by systems like Immediate Payment Service (IMPS) and FASTag, these innovations are accelerating secure and accessible financial exchanges. According to the National Payments Corporation of India (NPCI), UPI's transactions reached a value of Rs 23.25 lakh crore, a rise from Rs 21.55 lakh crore in the previous month. This surge highlights an ongoing cultural transition favoring digital financial inclusivity.

(With inputs from agencies.)