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UPI transactions hit new high in May but cash still thriving
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Despite the surge in UPI transactions, cash usage, particularly the Rs 500 note, remains surprisingly high in India, reaching record levels. This phenomenon is attributed to precautionary hoarding driven by economic uncertainties stemming from the Covid-19 pandemic. While the government promotes digital payments and smaller denominations, the preference for liquidity persists, reversing the pre-pandemic trend of reduced cash holdings.
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