Govt. To Promote Lower Denomination Notes, Expand Digital Payments: FM Sitharaman
Building awareness around digital transfers is essential so that people begin to see clear advantages in using digital modes of payment, says FM
Union Finance Minister Nirmala Sitharaman said on June 1, 2025, that the government is prioritising the circulation of smaller denomination currency and increasing awareness about digital payments.
Speaking at a seminar in New Delhi on the 60th anniversary of Pt Deendayal Upadhyaya’s Integral Humanism Lectures, she stated that the two thousand rupee note is now almost entirely out of use, with only about 0.02 percent still held by the public.
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FM added that building awareness around digital transfers is essential so that people begin to see clear advantages in using digital modes of payment.
In recent years, India has seen a huge increase in digital payments, moving closer to becoming a cashless society. Leading this change is UPI, which hit a record 16.73 billion transactions in December 2024.
Along with UPI, systems like Immediate Payment Service (IMPS) and FASTag have also become important, helping make transactions quicker, easier, and safer.
According to the latest data from the National Payments Corporation of India, UPI processed over 16.73 billion transactions worth ₹23.25 lakh crore in December, up from ₹21.55 lakh crore in November.
UPI handled about 172 billion transactions in 2024, a 46 percent increase compared to 117.64 billion in 2023. This growth shows how digital payments are becoming a key part of India’s push for financial inclusion.
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