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Monetary puzzle: Why cash in circulation has risen in India even as UPI transactions set new records

Monetary puzzle: Why cash in circulation has risen in India even as UPI transactions set new records

Monetary puzzle: Why cash in circulation has risen in India even as UPI transactions set new records



India’s cash in circulation hit a record ₹40 trillion in January, even as UPI transactions scaled yet another peak. What exactly is going on? Four explanations unpack a trend that should both reassure and caution policymakers.

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