Shift from Cash to Cashless Economy in India: Evidence from RBI & World Bank Data

Author(s)	Dr. Manoj Minj
Country	India
Abstract	India is undergoing a significant transformation in its financial ecosystem, with digital payments expanding rapidly alongside sustained use of cash. This study analyzes secondary data from the Reserve Bank of India (RBI) and the World Bank’s Global Findex database (2011–2021) to examine the shift from cash to cashless transactions. The analysis covers trends in currency in circulation (CiC), the cash-to-GDP ratio, and adoption of digital financial services. Results reveal a paradox: while UPI and other digital channels have grown exponentially between 2016 and 2024, cash demand has also risen steadily after the demonetisation shock of 2016–17. By integrating RBI macroeconomic indicators with World Bank inclusion data, this study argues that India is moving toward a less-cash economy rather than a fully cashless one. The paper concludes that trust, digital literacy, and infrastructure remain critical to reducing dependence on cash.
Keywords	Keywords: Cashless economy, RBI, World Bank Findex, Digital payments, Currency in circulation, India
Field	Sociology > Banking / Finance
Published In	Volume 16, Issue 1, January-June 2025
Published On	2025-04-05
Cite This	Shift from Cash to Cashless Economy in India: Evidence from RBI & World Bank Data - Dr. Manoj Minj - IJAIDR Volume 16, Issue 1, January-June 2025.

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