GENERAL17 Sept 2026
In the age of UPI, cash still going strong as circulation growth picks up
Cash in circulation rose 12.5% year-on-year to ₹42.86 trillion in August, even as UPI, or Unified Payments Interface, transactions kept growing. This shows cash is still going strong. It matters because MDR, the fee merchants pay on digital payments, could slow the move to digital. Check your payment mix and keep clean records for both cash and digital sales.
Key Statutory Highlights
- Cash in circulation rose 12.5% year-on-year to ₹42.86 trillion in August.
- UPI transactions continued to grow at the same time as cash in circulation picked up.
- Questions are being raised about how MDR could affect the shift to digital payments.
Actionable Advice for Taxpayers / Founders:Look at how much of your sales come in as cash and how much goes digital, and make sure both are recorded properly in your books. Discuss your cash handling with your tax advisor so your records stay in order.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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