Cash Dominance Persists in India Even After Demonetization

A recent survey by the Reserve Bank of India (RBI) reveals that Indians continue to prefer cash transactions despite advancements in digital payments. The survey indicates that the demand for cash remains strong, contradicting the notion of a cashless economy. As of March 2026, the total value of currency in circulation reached approximately ₹41.24 lakh crore, showing a significant increase from ₹17.77 lakh crore on November 8, 2016, the day demonetization was announced. This represents a 143% rise in cash demand over the decade. The RBI's annual report highlights a 11.9% increase in the value of banknotes in circulation for the fiscal year 2025-26. The findings suggest that while digital payment methods like UPI are gaining popularity, the attachment to cash remains deeply rooted among the Indian populace.