New Delhi, Feb. 23 -- India is currently running two payment systems in parallel. On one side is its gleaming showcase, UPI, with 21.7 billion transactions in January 2026 worth Rs.28.33 trillion in value. On the other side is the system of physical cash. Currency in circulation (CiC) hit Rs.40 trillion, rising 11% year-on-year.

At first glance, it looks like a contradiction: How can India be 'digitizing' and 'recashing' at the same time? It isn't, though, because while the digital payments revolution is real, India's cash-loving political economy is also part of the stark reality.

The apparent paradox of the usage of both rising is a warning that we are settling into a hybrid equilibrium: digital for convenience, cash for avoidance or ...