India’s digital economy is expanding rapidly, especially when it comes to UPI (Unified Payments Interface) adoption. But lately, many small shopkeepers have started fearing UPI, and we’re seeing signs saying “No UPI, Only Cash” in several shops. What’s causing this sudden change? Let’s dive deeper.
The Rise and Popularity of UPI
- India now sees over 18 billion transactions every month via UPI.
- In May and June alone, there were over 6.5 crore UPI transactions a day.
- In just 9 years, UPI has left behind global giants like VISA in terms of usage.
- According to Amitabh Kant (Ex-CEO, NITI Aayog), UPI has become the most popular payment system in the world.
Why Are Small Shopkeepers Worried?
- Earlier, cash was preferred only for big transactions; but now, even small shops, stalls, and eateries are putting up “No UPI, Only Cash” boards.
- The main reason: Fear of getting GST notices and government monitoring of all digital payments.
GST Notices: The Shopkeepers’ Main Concern
- There are reports that some traders have received GST notices for UPI transactions.
- Many believe that digital transactions mean all their details reach tax authorities.
- This makes it difficult for some to hide under-the-table (unreported) business or avoid taxes, creating widespread anxiety among small business owners.
Impact on UPI Adoption and Changing Trends
- Many small traders have now stopped accepting UPI payments.
- Customers are being pushed to make cash payments only.
- This trend is not just limited to Bangalore or metro cities—it’s happening all over India.
Government & Expert Opinions
- The government claims UPI ensures transparency, speed, and robust security.
- However, traders feel UPI increases their risk of receiving tax-related notices.
- It is now crucial for the government to reassure traders, clarify rules, and provide accurate information to inspire trust in digital payments.
Conclusion
While UPI has powered an extraordinary boom in India’s digital economy, GST notices and concerns about transaction visibility have made small traders hesitant. This has led to reduced UPI acceptance and a renewed emphasis on cash transactions. Addressing the fears of traders transparently and offering clear solutions is the urgent need of the hour if India is to sustain its digital growth story.