Daijiworld Media Network- New Delhi
New Delhi, Jun 18: The humble coin is slowly losing its shine in India’s digital-first economy. With the rapid surge in Unified Payments Interface (UPI) transactions, the demand and circulation of coins have witnessed a noticeable decline, especially in urban and semi-urban regions.
As per a decade-long analysis of Reserve Bank of India (RBI) data, the growth in the volume of coins in circulation stood at a modest 3.6% in 2024-25 compared to the previous financial year. This is a stark contrast to the 8.5% growth recorded during 2016-17—the early days of UPI—over 2015-16. In terms of value, the increase dropped from 14.7% in 2016-17 to just 9.6% in 2024-25.
On March 31, 2025, the total volume of coins in various denominations—including 50 paise, Re 1, Rs 2, Rs 5, Rs 10, and Rs 20—stood at 13.7 lakh pieces, amounting to Rs 36,589 crore in value. Interestingly, Re 1, Rs 2, and Rs 5 coins accounted for over 81% of the total volume, and over 64% of the overall value.
Meanwhile, UPI has witnessed explosive growth since its inception in April 2016. From 6.4 million transactions worth Rs 2,425 crore in March 2017, the digital payments system recorded an astronomical rise to 18.3 billion transactions worth Rs 24,77,221 crore by March 2025, according to data from the National Payments Corporation of India (NPCI).
The shift is even more evident when contrasting trends post-2016. While coins registered strong demand in the pre-UPI era—with a 14.7% rise in value during 2016-17—the pandemic year of 2020-21 saw their growth plunge, with just a 2.1% increase in value and a negligible 1% growth in volume. The recovery has remained slow, with 2.6% and 3.5% volume growth in 2022-23 and 2023-24 respectively.
Despite the digital boom, coins continue to hold importance in rural sectors, small retail outlets, and public utilities where digital penetration remains limited. Analysts point out that the minting of higher denomination coins like Rs 10 and Rs 20 has buoyed the total value figures, even as coin usage continues to decline.
Vaibhav Koul, Managing Director – Technology and Digital, Protiviti India, noted, “UPI transactions have significantly reduced the need for physical change, especially in urban and semi-urban locations. The convenience of QR codes and instant settlements has transformed payment behaviour.”
As India steadily advances toward a cash-lite economy, it appears that coins—once the cornerstone of everyday transactions—are being quietly outpaced by the tap of a screen.