New Delhi | UPI has emerged as the most preferred mode of transaction, surpassing cash transactions, and there is a need for targeted interventions to strengthen RuPay debit card usage, particularly in rural and semi-urban areas, a report said.

The Department of Financial Services (DFS), Ministry of Finance, released a report titled "Socio-Economic Impact Analysis of the Incentive Scheme for Promotion of RuPay Debit Card and low-value BHIM-UPI (Person-to-Merchant) transactions" during the Chintan Shivir held on 13-14 February 2026.

The socio-economic impact analysis is based on an extensive primary survey covering 10,378 respondents across 15 States, including 6,167 users, 2,199 merchants, and 2,012 service providers, representing the key stakeholders of India's digital payments ecosystem along with in-depth secondary research.

The evaluation indicates a significant and sustained increase in the adoption of digital payments across diverse socio-economic segments.

Among surveyed users UPI has emerged as the most preferred mode of transaction, accounting for 57 per cent, surpassing cash transactions at 38 per cent, primarily due to ease of use and instant fund transfer capability.

Digital payments now dominate everyday transaction behaviour, with 65 per cent of UPI users reporting multiple digital transactions per day, as per the report.

The report identifies the need for targeted interventions to strengthen RuPay debit card usage, particularly in rural and semi-urban areas.

Recommendations include focused merchant enablement programmes, promotion of low-value transactions through solutions such as UPI Lite, and continued investment in connectivity, digital literacy, and fraud risk mitigation, the finance ministry said In a Statement.