Department of Financial Services (DFS) report shows UPI overtakes cash with 57% share of transactions

Key facts

• Department of Financial Services (DFS), Ministry of Finance, released the report titled 'Socio-Economic Impact Analysis of the Incentive Scheme for Promotion of RuPay Debit Card and low-value BHIM-UPI (Person-to-Merchant) transactions' during Chintan Shivir on 13-14 February 2026.
• Survey covered 10,378 respondents across 15 States: 6,167 users, 2,199 merchants, and 2,012 service providers.
• UPI accounts for 57% of surveyed user transactions, surpassing cash at 38%.
• 65% of UPI users report multiple digital transactions per day.
• Report recommends targeted interventions to boost RuPay debit card usage in rural and semi-urban areas through merchant enablement programmes, UPI Lite for low-value transactions, and investment in connectivity, digital literacy, and fraud risk mitigation.