International Journal of Social Science & Economic Research
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Title:
Is Digital Financial Payment fuelling inflation? Evidence from India's Digital Payment Boom

Authors:
Krish Kataruka

Journal: International Journal of Social Science and Economic Research (IJSSER)
ISSN: 2455-8834
Volume: 11
Issue: 7
Publication Date: July 2026
DOI: 10.46609/IJSSER.2026.v11i07.031

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Krish Kataruka
La Martiniere for Boys, Kolkata

MLA 8
Kataruka, Krish. "Is Digital Financial Payment fuelling inflation? Evidence from India's Digital Payment Boom." Int. j. of Social Science and Economic Research, vol. 11, no. 7, July 2026, pp. 3327-3343, doi.org/10.46609/IJSSER.2026.v11i07.031. Accessed July 2026.
APA 6
Kataruka, K. (2026, July). Is Digital Financial Payment fuelling inflation? Evidence from India's Digital Payment Boom. Int. j. of Social Science and Economic Research, 11(7), 3327-3343. Retrieved from https://doi.org/10.46609/IJSSER.2026.v11i07.031
Chicago
Kataruka, Krish. "Is Digital Financial Payment fuelling inflation? Evidence from India's Digital Payment Boom." Int. j. of Social Science and Economic Research 11, no. 7 (July 2026), 3327-3343. Accessed July, 2026. https://doi.org/10.46609/IJSSER.2026.v11i07.031.

References

[1] . National Payments Corporation of India. (n.d.). UPI product statistics. Retrieved April 10, 2026, from https://www.npci.org.in/product/upi/product-statistics.
[2] . Reserve Bank of India. (n.d.). Database on Indian economy. Retrieved April 10, 2026, from https://data.rbi.org.in.
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[7] . Imam, A., Muslikhati, M., & Aprilianto, F. (2022). Pengaruh Saham Syariah, Sukuk, dan Reksadana Syariah Terhadap Pertumbuhan Ekonomi Indonesia Tahun 2011-2020. Journal of Islamic Economics Development and Innovation (JIEDI), 2(1), 063-073.
[8] . Omubo-Pepple, S. N. (2025). Fiscal Variation and Commercial Banks Assets Quality in Nigeria.
[9] . Ghosh, R., Paul, B., Bagchi, B., & Ghosh, P. K. (2023). The Effects of External Debt on the Economic Growth of India during Various Crisis Periods: A Markov-Switching GARCH Model Approach. Journal of Risk Analysis and Crisis Response, 13(4).
[10] . Rooj, D., & Mehta, A. (2025). Digital payments and inflation expectations: evidence from survey data. Macroeconomics and Finance in Emerging Market Economies, 1-22.
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[12] . Birigozzi, A., De Silva, C., & Luitel, P. (2025). Digital payments and GDP growth: A behavioural quantitative analysis. Research in International Business and Finance, 75, 102768.

ABSTRACT:
This paper examines the linkages between digital financial transactions and inflation in India. Using data on the Unified Payments Interface (UPI) transactions, for both volume and value, the study finds that there is a stronger relationship between the volume of transactions and inflation as compared to the value of transactions. The study also finds that the correlation is higher for non-food inflation as compared to food inflation. Lastly, the results of the paper illustrate that the relationship between UPI transactions and inflation was higher for urban India as compared to rural India. These results provide important policy implications for financial regulators, consumers, as well as other stakeholders in the market ecosystem.

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