Cash usage gaining pace in economy amidst slowing UPI growth
Summary
- The growth rate of UPI transactions has been consistently slowing down since 2021-22.
- Despite the slow growth, UPI transactions are still growing at a rate higher than cash usage.
- The government is considering introducing a Merchant Discount Rate (MDR) charge on UPI transactions.
- The trend of slowing UPI growth and increasing cash usage has implications for the economy's digital payment landscape.
Key Facts
- · Slowing UPI growth since 2021-22
- · MDR charge on UPI under consideration
- · Cash usage growing in the economy
Why it matters
The slowdown in UPI growth and increasing cash usage can impact the government's efforts to promote digital payments and reduce cash transactions in the economy.
#UPI#Digital Payments#Economy#MDR Charge