Union Finance Minister Nirmala Sitharaman said that the priority of the government is to “make sure” that currency in circulation will be in “lower denominations” and spreading more awareness for “doing digital transfers.”
Answering a question on the future of Rs 500 currency, Sitharaman said, “We are making every effort to make sure that currency will be in the lower denominations, used much more than the higher, as the Rs 2000 is almost completely out of circulation, except for possibly 0.02, which is still lying outside. Others have given it to the banks.”
“We need to have more digital awareness built so that people see a benefit in doing digital transfers,” the Union Finance Minister said at the ‘National Commemorative Seminar on 60 Years of Pt Deendayal Upadhyaya Integral Humanism Lectures’ in the national capital.
In recent years, India has witnessed an unparalleled rise in digital transactions, marking a significant milestone in its journey towards becoming a cashless society. At the forefront of India’s digital payment revolution is UPI with a record hit of 16.73 billion transactions in December 2024.
In addition to this, Immediate Payment Service (IMPS) and FASTag have emerged as pivotal players, making financial transactions faster, more accessible, and secure. As of recent data from the National Payments Corporation of India (NPCI), UPI has set a new record by processing over 16.73 billion transactions, with a staggering transaction value of Rs 23.25 lakh crore. This is a notable jump from Rs 21.55 lakh crore in November.
In 2024, UPI processed around 172 billion transactions, marking a 46 per cent increase from 117.64 billion in 2023. This rise underscores a broader cultural shift toward financial inclusivity, with UPI being a central pillar.
