UPI Transactions Rise Amid Increasing Cash Circulation and Underused Features in 2026

In January 2026, UPI transactions reached a record Rs 28.3 lakh crore, highlighting the growth of digital payments in India. Despite this, cash circulation also rose to nearly Rs 40 lakh crore, partly due to small traders reverting to cash amid tax scrutiny. Meanwhile, many UPI users continue to rely on basic features, with advanced options like UPI Lite, Tap Pay, and AutoPay remaining underutilized, indicating room for broader adoption of digital payment innovations.